Canada to loan Xanadu $140 million for quantum manufacturing plant

The Canadian government will loan quantum-computing startup Xanadu C$195 million ($140.78 million) to build a photonics manufacturing plant in Toronto, Reuters reported.

The financing is Canada’s largest government support package for quantum technology. It covers the federal portion of up to C$390 million in potential public funding announced by Xanadu in March. The company expects Ontario to provide the remaining C$195 million.

Xanadu said the federal loan will help build the plant but did not disclose its terms. CEO Christian Weedbrook told Reuters that repayments are expected to be based on a percentage of future revenue and that the facility could create up to 275 jobs.

Founded in 2016, Xanadu is developing a photonic quantum computer designed to operate at room temperature. Its system is not yet commercially available.

The company, whose customers include AMD and Tower Semiconductor, listed on the Nasdaq in March following a blank-check merger.

The loan comes as governments increase support for quantum computing, which experts say could solve problems beyond the reach of conventional computers but remains vulnerable to errors caused by environmental disturbances.