Canada’s federal government will provide a C$195 million loan to Xanadu Quantum Technologies to build a photonic components manufacturing plant in Toronto. The funding, announced Friday, marks the largest single government investment in quantum technology in Canada and follows Xanadu’s disclosure in March of up to C$390 million in potential public support.
The Toronto-based company will use the federal loan to construct a facility dedicated to producing photonic components for quantum computers. Xanadu’s quantum systems rely on photonics, a light-based technology similar to that used in fiber-optic internet infrastructure, and are designed to operate at room temperature—a distinction from competitors that typically require near-absolute zero conditions to minimize errors.
The quantum computer remains in development and is not yet commercially available, with ongoing sensitivity to environmental disturbances such as sound. Xanadu expects to finalize an agreement for an additional C$195 million from Ontario’s provincial government, completing the announced funding package. The terms of the federal loan were not disclosed.
The announcement follows the Trump administration’s plan to take a combined $2 billion equity stake across nine quantum computing companies in the United States.
