Canada Unveils Quantum Champions Program to Compete with US Initiative

The Canadian federal government has launched a new quantum research initiative, the Canadian Quantum Champions Program (CQCP), aimed at bolstering the domestic quantum computing sector in response to a United States military-backed program enticing Canadian firms. This strategic move is designed to solidify Canada’s position in the global quantum landscape, as well as retain homegrown talent and innovation.

On March 15, 2024, at the offices of the quantum technology firm Xanadu in Toronto, the Minister of Innovation, Science and Economic Development Evan Solomon announced that the CQCP will provide support to four leading Canadian quantum companies: Xanadu, Nord Quantique from Sherbrooke, Photonic based in Coquitlam, and Anyon Systems from Montreal. Each firm may receive up to $23 million CAD to advance their development of scalable and practical quantum computers.

“This investment is foundational for cultivating a strong quantum computing industry in this country. And it is a clear indication to both foreign and domestic investors that Canada is serious about quantum,” stated Julien Camirand Lemyre, CEO of Nord Quantique. The funding is part of Canada’s recent commitment of $334.3 million CAD to the quantum sector, pledged in the federal budget announced last November under the newly established Defence Industrial Strategy.

Over the next five years, the government plans to allocate $223.1 million CAD specifically for quantum research, alongside $111.2 million CAD to secure the Canadian quantum industry and explore its applications in defence. This follows the introduction of a national quantum strategy worth $360 million CAD in 2023.

The announcement comes at a pivotal time, as three Canadian companies—Xanadu, Nord Quantique, and Photonic—have moved to the second round of the U.S. Quantum Benchmarking Initiative (QBI), a program administered by the Defense Advanced Research Projects Agency (DARPA). Should they succeed in developing a functional and fault-tolerant quantum computer, they stand to gain up to $316 million USD (approximately $445 million CAD) in funding. The specifics regarding additional funding from the CQCP for these participating companies remain unclear, as certain technical milestones must first be achieved.

The National Research Council of Canada will establish the Benchmarking Quantum Platforms initiative to evaluate the technologies developed by these companies. Lemyre highlighted the importance of this investment for maintaining Canada’s competitive edge in quantum computing.

Nord Quantique focuses on superconducting qubits and employs unique error correction methods at the qubit level—essential building blocks of quantum computing. The company, which consists of a 50-member team, claims to have devised a method that keeps quantum systems compact and energy-efficient compared to competitors. Through the U.S. QBI program, Nord Quantique has already secured $1 million USD for participating in Phase A. The second phase offers an initial $5 million USD with an opportunity for an additional $10 million USD, contingent on matching contributions from the participating companies.

Anyon Systems, described by CEO Alireza Najafi-Yazdi as the “dark horse” of the initiative, aims to create a quantum computer with several thousand qubits, incorporating built-in error and noise reduction features. Founded in 2014 and operating with a team of 30, Anyon Systems has refrained from engaging venture capital, relying instead on government grants. “The government wants to make sure companies are anchored in Canada, and I fully agree with that sentiment,” Najafi-Yazdi remarked in a recent interview.

Photonic, another key player, is engaged in the development of silicon spin qubits and is focused on addressing scalability challenges in quantum computing. The company has raised over $100 million USD to date, including support from strategic partner Microsoft. “We’re pleased that Canada recognizes the strategic importance of quantum, and to be one of the companies invited to participate in Phase 1 of the CQCP,” stated Paul Terry, CEO of Photonic.

Xanadu employs a photonic approach to quantum computing, utilizing light particles to facilitate computations. The company announced plans to go public through a special purpose acquisition company (SPAC) to fund its goal of establishing a Canadian quantum data centre by 2029. CEO Christian Weedbrook has previously stated that Xanadu has no intention of relocating to the U.S. and has advocated for a Canadian equivalent to the QBI, emphasizing the need for direct federal investments in quantum firms.

In light of the competitive landscape posed by the U.S. QBI program, Solomon confirmed that Ottawa is developing policies to retain quantum firms within Canada. He underscored that safeguarding quantum intellectual property and innovation is of national significance, given the critical role of quantum and cybersecurity technologies in national security.

As Canada positions itself within the rapidly evolving quantum technology sector, the CQCP represents a significant commitment to fostering domestic innovation and ensuring the country remains a leader in this pivotal field.