December 16, 2025 The federal government is launching a new quantum computing program aimed at preventing Canada’s top startups from being lured abroad. It is now committing up to $23 million each to four homegrown companies as part of a broader effort to avoid repeating mistakes made in artificial intelligence. The initiative targets firms seen as early leaders in a global race that has drawn heavy interest from the United States and other jurisdictions.
Under the first phase of the Canadian Quantum Champions Program, Ottawa will back Toronto-based Xanadu Quantum Technologies, Montreal’s Anyon Systems, Coquitlam, B.C.-based Photonic and Sherbrooke’s Nord Quantique. The program is the first pillar of a $334.3-million quantum commitment outlined in the federal budget. It could unlock hundreds of millions more if the companies continue progressing toward industrial-scale systems.
“We’re very happy that they’re taking this step and recognizing we have a part to play in the future of computing,” said Photonic founder and chief quantum officer Stephanie Simmons, who also co-chairs the federal Quantum Advisory Council. The program will be overseen by the industry minister, with technical support from the National Research Council.
According to Artificial Intelligence and Digital Innovation Minister Evan Solomon, the approach reflects lessons learned from earlier tech strategies. Hence, he hinted at “a lot of diligence to ensure these companies have the potential to do what they say they can do.”
Quantum computing has long been viewed as a strategic opportunity for Canada, which established early research leadership more than a generation ago. The technology promises advances in areas such as financial modelling, materials science, drug discovery and machine learning. It also carries national security implications, as future quantum systems could undermine today’s cryptographic standards, prompting governments and financial institutions to begin preparing their infrastructure.
The timing is critical. Three of the four funded companies — Xanadu, Photonic and Nord Quantique — have advanced in the U.S. Defense Advanced Research Projects Agency’s Quantum Benchmarking Initiative, making them eligible for US$16 million each and potentially much more. At the same time, U.S. states including Illinois and Maryland are actively courting quantum firms. This raises concerns that Canada’s strongest players could relocate.
That risk has already materialized once. D-Wave, an early Canadian quantum pioneer, moved its headquarters to Silicon Valley after commercializing a partial quantum system. Federal officials say the new program is designed to avoid a repeat.
