UNSW Sydney quantum computing spinout Diraq has banked $20 million from the federal government’s National Reconstruction Fund.
The equity, less than 5% of the $466 million the government poured into US-based PsiQuantum, which is now running several months behind schedule on plans to build its Brisbane facility, to build Australia’s first quantum computer, puts Diraq in the race for gold, with plans to deliver its first product by 2029, a quantum computer capable of genuine quantum advantage.
The company recently launched operations in Melbourne, in addition to two hubs in Sydney, alongside US operations in Palo Alto, Boston and Chicago.
Diraq was founded by Andrew Dzurak, a professor in quantum engineering at UNSW, in 2022. He led the team that built the first quantum logic gate in silicon in 2015 and the new mechanisms they’ve developed are the result of more than two decades of research.
Diraq currently employs more than 70 staff and PhD students in Australia. The new capital will raise the headcount with jobs in research, development, and commercialisation.
The NRF funding is part of an ongoing $75 million raise. The additional $20m takes the total raised by Diraq past US$150m including government funding.
Diraq last raised a $15m in mid-2025, and a $10.5m in Series A2 extension in June 2024.
CSIRO-backed deep tech VC Main Sequence, Uniseed, NewSouth Innovations, France’s Quantonation, Singapore’s ICM Global Funds, and US fund Morgan Creek Digital are among its investors. Hostplus, UniSuper, NGS Super and Taronga Ventures are also on the cap table.
Dzurak, Diraq’s CEO stated years of breakthrough research is transitioning into a commercial reality that will redefine future computing and the NRF investment supports build a sovereign, advanced manufacturing capacity.
“This investment arrives as Australia builds its strength in critical technology infrastructure, particularly within our booming data centre sector,” he stated.
“Diraq’s quantum computers are natively designed to integrate seamlessly with existing data centres, offering a unique, homegrown advantage. By leveraging Australian quantum expertise, local businesses—from energy providers optimising the power grid to defence and pharmaceutical innovators—can gain a decisive competitive advantage in the global market, ensuring Australia captures the full economic value of its inventions.”
Diraq’s quantum computers store information in silicon-based quantum bits, known as “qubits” and the startup has developed proprietary technology that enables millions of qubits to be placed on a single chip, to create compact computers to minimise the intensive cooling facilities required – quantum requireds to operate at close to absolute zero (−273.15 °C) – to create quantum computing more cost- and energy-efficient.
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