Indian Government Backs QpiAI’s Quantum AI Startup with $32 Million Investment

An Indian startup, QpiAI, focused on integrating artificial intelligence with quantum computing, has secured $32 million in a new Series A funding round. The Indian government participated as a co-investor, according to a report by TechCrunch.

The funds will be allocated towards developing large-scale quantum computers for the global market.

As part of India’s National Quantum Mission, the government has emerged as a key investor. Avataar Ventures also joined the funding round, which has valued the company at $162 million.

This latest financial backing underscores India’s ambitions to strengthen its position in the high-tech sector. In April 2023, the government launched the National Quantum Mission aimed at fostering this field as a strategically important segment for the economy, science, and societal security.

Key initiatives under this mission include:

The total budget for the project stands at 60.3 billion rupees ($750 million), with funding allocated for research, development, infrastructure, and workforce training.

Based in Bangalore, with branches in the US and Finland, QpiAI claims to have developed the country’s first fully functional quantum computer, known as QpiAI-Indus. This system, launched in April, features 25 superconducting qubits.

The firm combines artificial intelligence and quantum computing to optimize processes across various industries:

QpiAI is working on both specialized software and proprietary hardware to apply quantum solutions to real-world challenges, such as discovering new materials and drug development.

«Quantum technologies can make AI truly resilient,» said QpiAI’s founder and CEO, Nagendra Nagaraja.

The company identifies simulation, drug synthesis, and material discovery as crucial areas where combining artificial intelligence with quantum computing provides a competitive edge.

«The configuration space of a superconducting chip is vast. AI plays a vital role in achieving optimal qubits, which is critical for integrating thousands of qubits to create logical qubits with error correction,» Nagaraja stated.

QpiAI plans to release a 64-qubit quantum computer in November, with customer availability projected for the second or third quarter of next year.

Additionally, the company anticipates launching production in India in 2026 for a new type of computing hardware. Currently, around 80% of components are assembled in-house.

The startup employs about 100 staff, including 25 PhD specialists from Indian and international research institutions, with nearly half working domestically. The company counts around 20 clients, including the Indian government, which utilizes the infrastructure for testing algorithms.

The firm claims to have been profitable for three consecutive years.

With the new funding, QpiAI aims to enter markets in Singapore and the Middle East, bolster local manufacturing, and expand its developments. By 2030, the company plans to establish a system with 100 logical qubits.

QpiAI has been selected as one of eight startups to participate in the National Quantum Mission, each receiving an initial grant of up to $3.5 million. The support program also includes:

«We will continue to support domestic companies like QpiAI so that they can grow into large-scale enterprises and strengthen India’s position as a global leader,» stated Ajay Chaudhry, chair of the National Quantum Mission.

In recent years, India has significantly enhanced its focus on artificial intelligence as a driver of economic growth and national security. The government has developed national-level strategies and programs, created specialized institutions and bodies for AI implementation, and launched projects across various sectors.

In June 2018, India’s official analytical center, NITI Aayog, introduced a National AI Development Strategy that laid the groundwork for subsequent developments. This strategy emphasizes AI as a tool for socio-economic advancement, with a focus on healthcare, agriculture, education, smart cities, and infrastructure.

The strategy highlights the principle of «AI for All,» aiming for broad and accessible technology usage in public interest. In 2021, NITI Aayog updated the strategic framework, reinforcing the commitment to responsible and ethical AI use.

In 2023, India launched the IndiaAI Mission, a centralized platform with a budget of around $1.25 billion, aimed at enhancing infrastructure, data centers, supporting startups, and creating a national cloud service for neural networks and open AI models.

Simultaneously, the Indian armed forces are actively adopting artificial intelligence for intelligence gathering, surveillance, drone management, cybersecurity, and autonomous combat systems.

The Ministry of Defense initiated several pilot programs, including an AI-based surveillance system at borders and the Udbhav project aimed at integrating neural networks into military doctrine. In 2023, the DRDO showcased its AI innovations, including autonomous robots and threat detection systems.

Artificial intelligence is increasingly being applied in healthcare (diagnosis, medicine), agriculture (precision farming, yield forecasting), finance (anti-fraud, credit scoring), and education through digital platforms and adaptive learning.

In August 2024, a group of Indian researchers began utilizing a Google AI model to detect tuberculosis by analyzing cough samples.