Australian National Audit Office Investigation

• 30 Jul 2024: The Shadow Science Minister, Paul Fletcher, asks the Auditor-General to conduct an investigation into the investment in PsiQuantum announced by the Australian and Queensland Governments: Request
• 14 Aug 2024: Paul Fletcher followup letter to Auditor-General: Request
• 26 Aug 2024: Acting Auditor-General: Response: Maybe

A TANGIBLE APPLICATION OF QUANTUM MECHANICS FOR NAVIGATION AND DEFENSE

Quantum positioning for civilian and defense navigation.

About a Bose-Einstein Condensate (BEC)

When multiple bosons, such as photons or certain types of atoms, occupy the same quantum state, they can exhibit a phenomenon called a Bose-Einstein Condensate (BEC)". This is a fascinating state of matter predicted by Satyendra Nath Bose and Albert Einstein in the early 1920s.

In a Bose-Einstein Condensate (BEC), a large number of bosons, often cooled to extremely low temperatures, all occupy the lowest possible energy state, known as the ground state, and essentially behave as a single quantum entity. At such low temperatures, the individual wave functions of the bosons start to overlap significantly, leading to the collective behavior.

Here's a breakdown of the key points:

• Low Temperatures: Creating a BEC requires extremely low temperatures, typically only a fraction of a degree above absolute zero. At these temperatures, the thermal energy is so low that the quantum effects dominate the behavior of the particles.
• Quantum Mechanical Effects: In the quantum world, particles don't behave like classical objects with well-defined positions and velocities. Instead, they have wave-like properties described by wave functions. When many bosons are cooled to extremely low temperatures, their wave functions start to overlap, and they can occupy the same quantum state.
• Macroscopic Quantum Phenomenon: The Bose-Einstein Condensate (BEC) is a macroscopic manifestation of quantum mechanics. Even though individual particles are subject to quantum uncertainty, when many of them come together in a BEC, their collective behavior becomes more predictable and coherent.
• Unique Properties: BEC exhibit fascinating properties, such as superfluidity and coherence times over macroscopic distances. Superfluidity means that the condensate can flow without any viscosity, meaning it flows forever without dissipating energy. Coherence refers to the fact that all the particles in the condensate act in unison, like one giant quantum wave.
• Experimental Realization: BECs were first experimentally realized in dilute atomic gases cooled to ultra-low temperatures using techniques like laser cooling and evaporative cooling. Since their discovery, BECs have been studied extensively in physics laboratories around the world for their unique properties and potential applications in fields like quantum computing and precision measurement.

Overall, the Bose-Einstein Condensate (BEC) represents one of the most remarkable manifestations of quantum mechanics at the macroscopic scale, offering insights into the nature of matter at its most fundamental level.

ABOUT QUANTUM COMPUTING

Before we think we're across the subject of quantum computing, let's revisit some basics (some notes from Lloyd Bunting's own learning some time ago): TechInvestment.AI/Quantum

COMPARING THE TECHNOLOGY STRATEGIES OF MICROSOFT AND ψ PSIQUANTUM

DARPA has funded two projects with different technologies to Microsoft and PsiQuantum, and a requirement for fault-tolerant quantum computing. Fault tolerant quantum computing technologies include:

• Superconducting qubits: These are among the most advanced quantum computing technologies, used by companies like IBM and Google. They operate at extremely low temperatures and use superconducting circuits to create qubits.
• Trapped ion qubits: Used by companies like IonQ and Honeywell Quantinuum (HQS), these systems use individual ions held in electromagnetic traps as qubits.
• Topological qubits: This approach, pursued by Microsoft, aims to use exotic quantum states of matter to create inherently fault-tolerant qubits.
• Photonic qubits: Companies like PsiQuantum and Xanadu are working on quantum computers that use photons as qubits.

Here is ClaudeAI's description of the technological approaches of Microsoft and PsiQuantum, and how they differ:

MICROSOFT

Microsoft is focusing on topological quantum computing, specifically using Majorana fermions as qubits. In March 2022 Microsoft announced its Azure Quantum team has engineered devices that allow them to induce a topological phase of matter bookended by a pair of Majorana zero modes. [About fermions and the Pauli exclusion principle]. Key aspects include:

• Topological qubits: These are theoretically more stable and less prone to decoherence than other types of qubits. They're based on the collective behavior of electrons in certain materials. Majorana zero modes. Majorana fermions are exotic particles that are their own antiparticles. Microsoft is trying to create and manipulate these particles in nanowires made of semiconductors and superconductors.
• Error correction: The topological approach potentially offers built-in error correction, which could be a significant advantage.
• Challenges: The main challenge is that Majorana fermions are extremely difficult to create and control. As of my last update, Microsoft had not definitively demonstrated the creation of a topological qubit.

ψ PSIQUANTUM

PsiQuantum is pursuing a photonic quantum computing approach. Key aspects include (ClaudeAI):

• PsiQuantum uses photons (particles of light) as qubits.
• Silicon photonics: PsiQuantum leverages advanced silicon photonics technology, which allows for the manipulation of individual photons on a chip.
• Room temperature operation: Unlike many other quantum approaches, photonic systems can potentially operate at room temperature, which could be a significant practical advantage.
• Scalability: PsiQuantum claims their approach is more scalable, as it can leverage existing semiconductor manufacturing techniques.
• Challenges: Maintaining quantum entanglement with photons and achieving sufficiently low error rates are significant challenges.

ABOUT ψ PSIQUANTUM

PsiQuantum was founded in 2015 by Professors Jeremy O'Brien (CEO), Mark Thompson, Pete Shadbolt (Chief Scientific Officer) and Terry Rudolph (Chief Architect).

PsiQuantum is located in Palo Alto, California. Google and Wikiwand report the company had 280 employees in 2014.

PsiQuantum is a quantum computer manufacturing company that enables everyday users to solve their problems in industries such as agriculture, climate, and finance. Forge reports: PsiQuantum has raised a total of USD708.5 million in funding over 5 rounds. Their latest funding was raised on 27 Jul 2021, from a Series D round.

Investors

Forge Global reports investors have granted PsiQuantum a USD 3.15 billion valuation and invested USD 700 million. Major investors in PsiQuantum include:

• 🇬🇧 Baillie Gifford is a large, independent investment management firm based in Edinburgh, Scotland. The company was founded in 1908 and is known for its long-term, growth-oriented investment approach. They manage assets for some of the world's largest institutional investors, including pension funds, financial institutions, and charitable foundations. Baillie Gifford operates as a partnership structure rather than a publicly traded company. As of April 2024, some key figures in the firm included: Joint Senior Partners: Malcolm MacColl and Dave Bujnowski (as of 2023). The firm participated in Blackrock's USD 450 million Series D round in 2021.
• Atomico: participated in the Series B round in 2019. 📰 Reuters 28 Sep 2023.
• 🇺🇸 Blackrock: led a USD450 mullion Series D round in 2021. Blackrock's portfolio is very large, and includes: 👉 Alphabet (Google), 👉 Amazon, 👉 Apple, Exxon Mobil, 👉 Facebook (Meta), 👉 Microsoft, Johnson & Johnson, JPMorgan Chase, Procter & Gamble, 👉 Visa
• 🇺🇸 Founders Fund: Portfolio. Note that Founders Fund participated in early funding rounds
• 🇺🇸 👉 Microsoft (M12): participated in several funding rounds. M12 portfolio
• 🇺🇸 Playground Global: an early investor. Portfolio
• 🇺🇸 Redpoint: an early investor

👉 TechInvestment.com is an investor in these indicated companies, and also invests in other technology companies in 🇺🇸 USA and 🇦🇺 Australia.

Forge notes: "PsiQuantum has not yet filed for an IPO. However, it's important to note that IPOs are not the sole avenue for a private company to transition to public trading. Private companies can also go public through alternative methods such as, but not limited to, Special Purpose Acquisition Companies (SPACs), direct listings, or through mergers and acquisitions." [Source: Forge Global]

In 2022, PsiQuantum and GlobalFoundries [NASDAQ:GFS], a spinoff from *Advanced Micro Devices [NASDAQ:AMD], received U.S. federal funding for quantum computer research and development. PsiQuantum also entered into a collaboration with the Air Force Research Laboratory (AFRL) [Wikiwand].

ABOUT THE ψ IN PSIQUANTUM

The psi symbol ψ is used in the mathematical expression of a qubit: |ψ⟩ = α|0⟩ + β|1⟩.
That can also be written as |ψ⟩ = α|↑⟩ + β|↓⟩

That formula is describing a quantum state:

• |ψ⟩ is the symbol representing the quantum state.
• α and β are numbers called probability amplitudes.
• |0⟩ and |1⟩, or α|↑⟩ and β|↓⟩ represent two possible states of a quantum system. These are often called "qubits," and they can be thought of as being in two different states at the same time due to a property called superposition ... that's why this website is called "superposition.technology".

So, the formula is saying that the quantum state |ψ⟩ is a combination of two states, |0⟩ and |1⟩, with coefficients α and β respectively. The squares of the absolute values of α and β give the probabilities of finding the system in the states |0⟩ and |1⟩ when measured.

In simpler terms, imagine you have a quantum system, like a qubit (which can represent, say, the spin of an electron). This formula is saying that the quantum state of that qubit, |ψ⟩, can be a mixture of two basic states, |0⟩ and |1⟩. The α and β values tell you how much of each state is in the mixture. When you measure the qubit, you'll find it in state |0⟩ with probability |α|² and in state |1⟩ with probability |β|².

⏯️ Quantum Computers, Explained With Quantum Physics

The quantum computer shown in the video above is similar to Google's or IBM's boson-based quantum computer - the copper "chandelier" is a mechanism for staged cooling to the point where the quantum processor itself, the little box at the bottom of the structure, is cooled to near absolute zero.

IonQ and Quantinuum (Honeywell + Cambridge Quantum) use trapped ions. IonQ has produced a range of quantum computers, and access to their technology is available via Amazon Braket Quantinuum claims to be the world's largest integrated quantum computer company.

Intel and Silicon Quantum Computing fermionic architectures focus on silicon-based qubits.

PsiQuantum's quantum computer uses photons rather than fermions or bosons, and this technology is likely to be more fault-tolerant, and therefore more efficient: DARPA's US2QC requirement. The DARPA project is being set up at Chicago's Illinois Quantum and Microelectronics Park (IQMP).

Canadian company Xanadu is also developing a photonic quantum computer.
Lloyd says: Thanks for the superposition T-shirt!

NEWS

27 Jul 2021: 📰 ψ PsiQuantum USD450 million funding round. "The funding round was led by funds and accounts managed by BlackRock, along with participation from insiders including Baillie Gifford and M12 – Microsoft’s venture fund – and new investors including Australian VC Blackbird Ventures and Singapore investment company Temasek. PsiQuantum has now raised a total of USD665 million in funding to date."

📰 ψ PsiQuantum has been awarded a contract by US Defence Advanced Projects Agency's (DARPA) Underexplored Systems for Utility-Scale Quantum Computing (US2QC) program, DARPA

📰 ψ PsiQuantum will build its first US-Based Utility-Scale Quantum Computer in Chicago, Illinois. This project will anchor Governor J.B. Pritzker's Illinois Quantum and Microelectronics Park to be developed at the former US Steel South Works Site in the City of Chicago. PsiQuantum

30 Apr 2024: 📰 ψ PsiQuantum has been funded by Australia's Federal and Queensland governments to build the first US-Based Utility-Scale Quantum Computer in Brisbane, Queensland. PsiQuantum acknowledged the technology for a world-first, fault-tolerant quantum computer in Brisbane ‘doesn’t work yet’ but remains confident it will be operational by 2027. 📰 TheAustralian

30 July 2024: Paul Fletcher (Shadow Minister for Science & the Arts, Shadow Minister for Government Services and the Digital Economy) has asked the Auditor-General to undertake an investigation into the investment in PsiQuantum announced by the Australian and Queensland on 30 Apr 2024.

26 Aug 2024: Investigation into the investment in PsiQuantum announced by the Australian and Queensland governments

"The acting Auditor-General responded on 26 August 2024 to correspondence from the Hon Paul Fletcher MP dated 30 July 2024 and follow-up correspondence dated 14 August 2024, requesting that the Auditor-General conduct an investigation into the investment in PsiQuantum announced by the Australian and Queensland governments on 30 April 2024." Australian National Audit Office

Timeline Provided to ANAO by Paul Fletcher (Shadow Minister for Science & the Arts, Shadow Minister for Government Services and the Digital Economy):

• During 2022: PsiQuantum approached the Australian Government with an unsolicited proposal (FOI DISR 75154)
• April-August 2022: Queensland Government Treasurer undertook multiple meeting with PsiQuantum: 7 April 2022, 14 July 2022, 24 Aug 2022.
• September 2022: Minister Husic appointed two senior executives from Blackbird (including Kate Glazebrook) to key departmental advisory boards in September 2022, including the National Quantum Advisory Board.
• Blackbird had become an investor in PsiQuantum in 2021 as part of the $450 million series D funding round that valued PsiQuantum at $3 billion.
• 14 October 2022: Minister Husic meets with PsiQuantum (FOI DISR 75154)
• 8 December 2022: Minister Husic meets with PsiQuantum (FOI DISR 75154)
• 19 December 2022: Minister Husic agreed to enter into Stage 2 formal due diligence with PsiQuantum (FOI DISR 75154)
• December 2022: Draft National Quantum Strategy, with input from Australia's Chief Scientist, is provided to Minister for Industry and Science Ed Husic's office
• January 2023:
  • DISR is continuing to chair an active whole of government working group.
  • DISR is working closely with PsiQuantum, Queensland Treasury and federal agencies.
  • DISR regularly meets with PsiQuantum (FOI DISR 75154)
• January 2023: Minister for Industry and Science Ed Husic meets with PsiQuantum at their US headquarters in Silicon Valley, California, USA "to express the Australian Government's commitment to working with PsiQuantum to comprehensively assess their proposed investment in Australia". (FOI DISR 75154) The AFR describes Husic "as a driving force behind the government’s huge and controversial $470 million investment in US-based quantum computing firm PsiQuantum. He has also set in train moves to regulate the use of artificial intelligence in Australia. And he still holds the purse strings for billions of dollars of tech sector funding through the National Reconstruction Fund, where slow progress has frustrated the industry."
• May 2023: PsiQuantum's lobbyist company, Brookline Advisory appeared on the Australian Government Register of Lobbyists. Brookline Advisory is led by Lidija Ivanovski former Chief of Staff to Deputy Prime Minister Richard Maries and Gerard Richardson former Senior Adviser to Treasurer Jim Chalmers.
• May 2023: Minister Husic's Office sends an email with a copy of the National Quantum Strategy to selected participants and stakeholders of the industry prior to the release (FOI emails).
• 3 May 2023: The final version of the National Quantum Strategy was made public. It is understood to be different to the draft version provided by the Government's Chief Scientist, Dr Cathy Foley in December 2022.
• June 2023: PsiQuantum established a holding company in Australia.
• Mid 2023: PsiQuantum was briefing investors (via email), to solicit private sector funding, that it was in advanced discussions with the Australian Government, prior to the EOI, either without a non-disclosure agreement (NDA) signed or in breach of an NDA, if an NDA was signed. (Request for dates of PsiQuantum's NDA have gone unanswered).
• Mid 2023: Industry sources noted that PsiQuantum thanked former Prime Minister Kevin Rudd in a public forum for the Australian Government investing in PsiQuantum, prior to the EOI opening.
• June 2023: The Department of Industry engaged King & Wood Mallesons [KWM] for legal due diligence on the PsiQuantum project. KWM's legal consultancy fees were up to $994,000 within 5 weeks of the EOI closing.
• July 2023: Duncan McIntyre, the Department Secretary in charge of the PsiQuantum Taskforce, who briefed against the Investment, was replaced by Helen Wilson. From this point, Duncan McIntyre was on leave for more than 12 months (including miscellaneous leave), after which he came back to a different department with a demotion to First Assistant Secretary. (Budget Estimates)
• 11 August 2023: EOI email was sent. PsiQuantum was not part of the EOI process.
• 11 September 2023: EOI closed.
• September 2023: Export Finance Australia (EFA) began work on providing funding for PsiQuantum (Budget Estimates), before the EOI assessment was concluded and a decision taken by Government.
• 29 September 2023: Department of Finance provided advice to Senator Katy Gallagher, Minister for Finance regarding the commercial arrangements of the PsiQuantum Investment that forms the basis of Cabinet deliberations (FOI DoF 23-24/168)
• During 2023: Members of the Australian quantum industry approached the Government for specific quantum funding (prior to the EOI) and were told there was no quantum specific funding and they would need to compete for funding as part of the National Reconstruction Fund [NRFC].
• During 2023: The National Quantum Advisory Board/Committee (with PsiQuantum's Venture Capitalist Executive on the Board) helped shape the Quantum Strategy. Membership:
  • Chair: Chief Scientist Dr Cathy Foley AO: awarded Australian Government Pioneer of the Year, QWC2024
  • Professor Michael J. Biercuk, Founder and CEO, Q-CTRL, University of Sydney
  • Ms Clare Birch, Blackbird
  • Dr Simon Devitt, Centre for Quantum Software and Information, UTS, h-Bar
  • Professor Bronwyn Fox, Chief Scientist, CSIRO
  • Prof Lloyd Hollenberg (Physics) – Quantum Hub Director, IBM Quantum Hub, University of Melbourne
  • Professor Andre Luiten, QuantX Labs, University of Adelaide
  • Professor Tanya Monro, Chief Defence Science and Technology Group (DSTG)
  • Professor Ed Santow, Human Technology Institute, UTS
  • Dr Vikram Sharma, Australian Quantum Alliance (Tech Council of Australia) and Quintessence Labs
  • Professor Michelle Simmons, Founder & CEO Silicon Quantum Computing, UNSW
  • Mr Mark Stickells, CEO Pawsey Supercomputing Centre
  • Professor Peter Turner, Sydney Quantum Academy, Macquarie University
  • Ms Jennifer Westacott, Business Council of Australia
  • Professor Andrew White, University of Queensland and ARC Centre for Engineered Quantum Systems

The EOI Process Provided to ANAO by Paul Fletcher (Shadow Minister for Science & the Arts, Shadow Minister for Government Services and the Digital Economy):

• Selected companies were sent an email on 11 August 2023, then given 4 weeks and strict conditions to compete for almost AUD 1 billion of funding. The strict conditions included:
  • no engagement with department officials,
  • no engagement with DISR's retained external lawyers,
  • no warning of the EOI email,
  • no phone number,
  • no person as a point of contact,
  • no indication of funding amount,
  • a requirement to sign a non-disclosure agreement, and
  • a clause saying the Government has the right to determine that nothing further come of the EOI process.
• The EOI closed on the 11 September 2023, however Export Finance Australia had already began working on financing the PsiQuantum Investment in September 2023.
• Further, the Australia Government's contract with King Wood and Mallesons for legal advice on the PsiQuantum deal was increased by $700,000 by 18 October 2023, within five weeks of the EOI closing. If the EOI were a genuine process, it is extremely unlikely that all of the necessary assessments of the multiple responses received to the EOI could have been completed (by multiple departments across two governments) within five weeks. The alternative inference is that the EOI was a sham and the decision to make the Investment in PsiQuantum had already been made.