Three Canadian Companies Advance in Quantum Computing Program Backed by U.S. Military

Three Canadian companies participating in the Quantum Benchmarking Initiative (QBI) have advanced to the program’s second stage. QBI is a research program backed by the U.S. military’s Defense Advanced Research Projects Agency (DARPA) that aims to build a commercially usable quantum computer by 2033. Stage A of the program included 18 participants each of whom received $1 million to conceptualize a utility-scale quantum computer and submit a report.

Toronto-based Xanadu Quantum Technologies Inc. (Xanadu), Montreal-based Nord Quantique Inc. (Nord Quantique), and Vancouver-based Photonic Inc. (Photonic) are amongst the 11 companies that will participate in Stage B. Stage B, which will evaluate the companies’ research and development pathway, awards the companies an initial US$5 million and offers an opportunity to negotiate for another US$10 million. The companies selected for Stage C may receive up to US$300 million if utility scale and quantum computers can be built based on their design and operate as intended.

Xanadu is a quantum computing company founded in 2016. The company also leads the development of PennyLane, an open-source software library for quantum computing and application development. Nord Quantique, founded in 2020, makes quantum computers with a focus on error correction. Photonic, founded in 2016, builds quantum computing and networking platforms based on optically-linked silicon spin qubits.

One challenge to evaluating quantum computing development plans is the diversity of technological approaches. The QBI program aims to thoroughly evaluate each company’s approach on its merits and determine if any quantum computing approach can achieve utility-scale operation.

Author: Helen Wu, 2025-2026 Articling Student-At-Law