Government of Canada Invests CAD $195 Million in Xanadu to Build the Quantum Supply Chain

Federal commitment through the Strategic Response Fund for Project OPTIMISM anchors Xanadu’s plan to manufacture the components of fault-tolerant utility-scale quantum computers in Canada.

TORONTO, Aug. 28, 2026 (GLOBE NEWSWIRE) — Xanadu Quantum Technologies Limited (“ Xanadu ”; NASDAQ/TSX: XNDU), a leading photonic quantum computing company, today announced it has signed a definitive agreement with the Government of Canada for CAD $195 million support through the Strategic Response Fund, administered by Innovation, Science and Economic Development Canada. The funding, which represents the largest investment in quantum manufacturing in Canadian history, is expected to help enable Xanadu to establish the advanced manufacturing facilities it needs to build fault-tolerant utility-scale photonic quantum computers.

The CAD $195 million federal commitment formalizes the complete federal portion of the potential funding of up to CAD $390 million in support announced on March 11, 2026 for Project OPTIMISM.

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Quantum computers capable of solving commercially valuable problems cannot be built solely from off-the-shelf parts. They are expected to depend on manufacturing capabilities that do not exist at scale today: heterogeneous integration of photonic chips, photonic integrated circuit packaging, wafer-level semiconductor testing and measurement, and quantum module assembly. With this investment, Xanadu will seek to build these new capabilities locally, giving the company a vertically integrated path from chip to system, and the manufacturing foundation for its roadmap toward quantum data centres.

“This agreement is a major milestone for Xanadu and for Canada’s ambition to lead in quantum technology and advanced manufacturing,” said Dr. Christian Weedbrook, Founder and Chief Executive Officer of Xanadu. “We believe building utility-scale quantum computers will require a new generation of highly specialized manufacturing capabilities. With the Government of Canada’s commitment through the Strategic Response Fund, we plan to move forward with establishing that infrastructure here at home, strengthening Canada’s quantum supply chain and creating a foundation for future quantum data-centre deployment. This is a vital step in our mission to build quantum computers that are useful and available to people everywhere and we take pride in the Government of Canada’s confidence in Xanadu, and we look forward to continuing our work to realize the full vision for Project OPTIMISM.”

“Building Canada strong means investing in the industries that will strengthen our economy today and into the future. Quantum technology represents a tremendous opportunity to create good jobs, strengthen our economic sovereignty, and grow world-leading industries here at home.