By Isabelle Bousquette

Quantum Machines, an Israeli quantum computing startup, raised $170 million in a Series C round, bringing total funding to date to $280 million.

The raise, the fifth-largest ever for a quantum computing company according to data provider PitchBook Data, comes amid growing excitement for quantum computing in the wake of hardware advancements announced by Microsoft and Google. The largest was a $624.6 million investment into PsiQuantum in 2024, according to PitchBook.

"Investors understand that at the end of the day, if you can bring a new paradigm of computing, that's probably the biggest potential one can think of," said Quantum Machines co-founder and Chief Executive Itamar Sivan. "There's nothing that's driving the industry and the economy more than computing in the last hundred years."

PSG Equity led the round with participation from Intel Capital, Red Dot Capital Partners and existing investors.

Quantum computing promises to do everything from simulating the behavior of natural materials in chemistry to breaking the public-key cryptography used to secure the internet.

Quantum startups have seen less investor activity in recent years compared with trendier areas like generative artificial intelligence and AI agents, in part because of uncertainty over when quantum computing can demonstrate meaningful commercial applications.

Quantum Machines doesn't have to wait for that day, selling its tech now to the companies, government labs and universities that are building quantum computers.

The startup provides control systems for quantum computers, the hardware and software that sends signals to the quantum processor, commanding it to execute certain tasks.

Quantum Machines said its products are designed to integrate with the varying types of quantum processors in use. It said it works with dozens of companies building quantum hardware, including Nvidia.

Sivan said he plans to use the money to continue developing the technology to support more powerful quantum computers and to invest in the company's head count. The company has about 200 employees worldwide, with offices in Israel, Denmark and Germany. By the end of 2025, the plan is to hire about 100 more and set up two more offices, in locations to be determined.

Quantum Machines declined to comment on its revenue and valuation.

Intel Capital, which invests off the balance sheet of Intel Corp., said Quantum Machines represents its first quantum investment.

The debate around quantum has strongly shifted from a question of "if" to a question of "when," said Intel Capital investment director Kike Miralles. "The timeline is still uncertain, but the category is here to stay."

Write to Isabelle Bousquette at isabelle.bousquette@wsj.com

(END) Dow Jones Newswires

February 25, 2025 09:00 ET (14:00 GMT)

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