Oratomic Raises $300M to Build Utility-Scale Quantum Computer with 20K Qubits

Several companies are working to build the first commercially viable quantum computer capable of significantly outperforming current systems. Oratomic, a startup founded by Caltech physicists, aims to develop the first utility-scale quantum computer by the end of the decade. This week, the company announced it has raised $300 million in a massive Series A round co-led by ARCH Venture Partners, Spark Capital, and Khosla Ventures, with participation from Bezos Expeditions, Index Ventures, General Catalyst, Lowercarbon Capital, Bain Capital, and others.

Oratomic uses lasers, which act as optical tweezers, to hold individual atoms in place as the basis for its quantum computer. The startup was launched after its researchers discovered that their approach can correct errors using significantly fewer qubits — the basic unit in quantum computing — than previously thought possible. Since quantum computers are sensitive to noise, effective error correction is the key to turning them into truly useful tools.

“You would have not previously been able to convince any of us to start a quantum computing company, because we just thought it was way too far away,” Oratomic’s co-founder and CEO Dolev Bluvstein told TechCrunch. “Only when we made this recent breakthrough did we simultaneously all change our minds.” Oratomic shouldn’t be compared to PsiQuantum, a startup valued at $7 billion last September, which is also bypassing the NISQ stage and aims to deliver a viable, million-qubit quantum computer by the end of next year. Bluvstein noted that Oratomic’s approach is fundamentally simpler and less expensive.

“The difference is that we need roughly 10,000 to 20,000 qubits to build a useful computer, and we have already experimentally demonstrated all of the core components required of that computer at a slightly smaller scale,” he said. A full-scale quantum computer could facilitate breakthroughs in any field requiring complex calculations, from biotech, chemistry, and logistics to artificial intelligence and cryptography. Companies working toward building these machines and developing software for their use have seen a wave of enthusiasm from investors recently.

Several startups in the space, including Infleqtion and Quantinuum, have gone public this year. Meanwhile, existing public companies like Rigetti and IonQ have seen their share prices surge over the past 18 months. Investor Vinod Khosla is confident Oratomic will build the first fault-tolerant quantum computer, writing on X that it was his firm’s “largest initial investment yet.” Why this matters: The pursuit of a commercially viable quantum computer has significant implications for various industries, including biotech, chemistry, and artificial intelligence.

Oratomic's approach, which requires only 20,000 qubits, could potentially democratize access to quantum computing by making it more affordable and practical. However, questions remain about the scalability and reliability of this technology. As investors continue to pour money into quantum startups, the competition is heating up, and it remains to be seen which approach will ultimately prevail.