Quantum computing might be difficult to comprehend (we’re still not sure what a qubit is), but one thing about it is easy to understand: it’s got a lot of money-making potential.
What happened: Xanadu Quantum Technologies, the Canadian darling of quantum, plans to go public on both the Toronto Stock Exchange and the Nasdaq, eyeing a valuation of US$3.6 billion. It’ll be the first tech IPO on Canada’s main stock market in over four years.
- The company originally planned a $200 million funding round, but investor interest in quantum, and ensuing stock surges, made an IPO more enticing.
Why it matters: Canada is a hotbed of quantum talent, but some experts fear we could see a repeat of what happened with AI, when top innovators left the country. Xanadu’s move to keep at least one foot in Canada should relieve some anxieties about a quantum exodus.
- “We’re a proudly Canadian company and we want to show our support for Canada,” CEO Christian Weedbrook told the Globe and Mail when asked about the decision.
- Ottawa is also expected to unveil new quantum funding measures in today’s budget that, fingers crossed, will incentivize other companies to stay put.
Zoom out: Some of the 80-odd private Canadian tech firms with revenue at US$100 million or more could be inspired by Xanadu’s IPO plunge and follow suit (perhaps 1Password, or Hopper). That said, Xanadu was motivated by factors that are specific to its sector.—QH