Microsoft and Australia’s Role in Majorana 1 Quantum Processor
Microsoft and Australia’s Role in Majorana 1 Quantum Processor
According to the Financial Times, Australia has become a major force in quantum computing through its contributions to Microsoft’s Majorana 1 processor, developed with researchers at the University of Sydney. The achievement builds on government-backed academic research from the 1990s and sustained funding for more than two decades.
At a US congressional hearing, Senator Ted Cruz held up a golden chip he valued at $1bn, calling it an American breakthrough. David Reilly, who formerly led the Sydney partnership with Microsoft, called the claim ironic. He had even handed a lab prototype to the Financial Times, noting that Australian teams built core elements of the processor. Microsoft acknowledged contributions from its Sydney group.
Australia has reinforced its position with a national quantum strategy. A A$940mn government-led investment supported PsiQuantum’s first full-scale site in Brisbane. The company, co-founded by Australian Jeremy O’Brien, recently raised $1bn from investors including BlackRock, Temasek and Nvidia’s venture arm, valuing it at $7bn. Additional support included a near-A$20mn Quantum Australia fund and A$13mn for Quantum Brilliance via the National Reconstruction Fund.
Sydney now hosts the A$150mn Nanoscience Hub, housing Emergence Quantum, founded by Reilly and Thomas Ohki. The facility includes two A$2mn quantum computers and one of the world’s quietest rooms, built on compacted shale bedrock, where an electron microscope images atoms. Reilly said it was no accident Australia has led in quantum tech for more than two decades. With Ohki, who previously worked at BBN Technologies, he launched Emergence Quantum to provide the “missing link” for commercialisation, acting as a “special ops” problem-solver for the industry.
Local start-ups are attracting global interest. Diraq and Silicon Quantum Computing were selected for the US Department of Defense’s Quantum Benchmarking Initiative. Darpa awarded $24mn in contracts to Q-CTRL to advance quantum sensing for military vehicles. Sydney-based DeteQt, founded by Jim Rabeau, won a A$3.3mn defence contract with the Australian navy. The company uses nitrogen-doped diamonds on semiconductors to detect shifts in the earth’s magnetic field, aiming to support submarine navigation, as well as MRI and mining applications. DeteQt has also been backed by ATP Fund in Texas.
Some in Australia question taxpayer spending on quantum, but investors have defended the approach. Alex Romero of venture group Main Sequence said Australia has acted as an R&D factory, producing founders who later head overseas, and emphasised the goal of bringing them back. She added that government commitment and venture support are laying the foundations for Australia to become a true powerhouse in quantum technology.
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About Microsoft
Microsoft is one of the world’s most influential technology companies and a driving force in the race toward quantum computing. Its Majorana 1 processor represents a milestone, combining hardware innovation with breakthroughs in topological qubits. Developed with contributions from the University of Sydney, Majorana 1 showcases Microsoft’s global research network and long-term investment in next-generation computing. By collaborating with academic leaders such as David Reilly and Thomas Ohki, Microsoft has gained intellectual property crucial to scaling quantum systems. The company’s broader strategy involves integrating quantum into its Azure cloud ecosystem, positioning Microsoft at the center of enterprise quantum applications.
About PsiQuantum
PsiQuantum is a US-headquartered quantum computing start-up co-founded by Australian scientist Jeremy O’Brien. The company is focused on building a large-scale, fault-tolerant quantum computer using photonics. Backed by a historic A$940mn investment from the Australian government, PsiQuantum is constructing its first full-scale facility in Brisbane. In addition, the company secured $1bn in fresh funding from investors such as BlackRock, Temasek, and Nvidia’s venture arm, achieving a $7bn valuation. PsiQuantum’s strong financial backing and scientific expertise make it a global frontrunner in quantum technology. Its Australian expansion highlights the country’s ambition to become a central hub for commercial quantum development.
About Quantum Brilliance
Quantum Brilliance is an Australian quantum computing start-up pioneering diamond-based quantum hardware. Unlike cryogenic systems, its processors can operate at room temperature, offering unique scalability advantages. The company received A$13mn in support from the Australian government’s National Reconstruction Fund to accelerate research and commercialization. By focusing on portable and energy-efficient quantum devices, Quantum Brilliance aims to democratize access to quantum capabilities, positioning itself for enterprise and industrial adoption. Its technology has broad potential applications across healthcare, logistics, and defense. The investment and government backing signal confidence in the company’s approach and strengthen Australia’s reputation in quantum innovation.
About Q-CTRL
Q-CTRL, headquartered in Sydney, specializes in quantum control engineering and quantum sensing technologies. Its software solutions reduce errors in quantum hardware, boosting performance and reliability. In 2025, DARPA awarded the company $24mn to develop quantum sensing technology for military vehicles, reinforcing its role in defense innovation. Q-CTRL’s expertise extends to partnerships with international quantum computing platforms, making it one of the most recognized quantum software firms globally. Its contributions are essential to stabilizing fragile quantum systems, enabling practical applications. By combining commercial contracts, government support, and cutting-edge research, Q-CTRL is a cornerstone of Australia’s fast-growing quantum ecosystem.
About Diraq
Diraq is a quantum computing company based in Sydney, focused on developing silicon-based qubits for scalable quantum processors. Built on decades of semiconductor expertise, Diraq’s technology integrates with existing fabrication methods, making it attractive for commercial viability. The company was selected by the US Department of Defense for its Quantum Benchmarking Initiative, which explores pathways to practical, industrial-scale quantum computing sooner than expected. Diraq’s recognition in this program highlights both its technical capabilities and Australia’s growing international reputation in quantum science. By bridging research with commercial deployment, Diraq stands as a key innovator in global quantum development.
About Silicon Quantum Computing (SQC)
Silicon Quantum Computing (SQC), founded in Sydney, is a pioneering spin-out from Australia’s world-class quantum research institutions. The company is advancing silicon-based quantum processors, aiming to leverage existing semiconductor manufacturing techniques for global scalability. Recently, SQC was chosen alongside Diraq for the US Department of Defense’s Quantum Benchmarking Initiative, placing it at the forefront of efforts to determine the feasibility of useful quantum computers. With strong government backing, academic ties, and international recognition, SQC has become a flagship example of Australia’s role in the quantum sector. Its work may provide one of the most practical routes to commercialization.
About DeteQt
DeteQt is an Australian start-up founded by physicist Jim Rabeau, focused on quantum sensing applications with direct defense and industrial uses. The company has developed nitrogen-doped diamond sensors integrated with semiconductors to detect variations in the earth’s magnetic field. This technology supports submarine navigation where GPS signals may be jammed, offering a crucial advantage for military operations. Backed by a A$3.3mn defence contract with the Australian navy and investment from ATP Fund in Texas, DeteQt is also exploring applications in medical imaging, particularly MRI, and in mining operations. The company represents Australia’s strength in translating quantum research into practical solutions.
Featured image Source: The Australian
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