Xanadu Quantum Technologies (NASDAQ: XNDU) has signed a definitive agreement with the Government of Canada for CAD $195 million in funding through the Strategic Response Fund, administered by Innovation, Science and Economic Development Canada.

The commitment represents the federal portion of up to CAD $390 million in total support announced in March 2026 for Project OPTIMISM. The government describes the investment as the largest in quantum manufacturing in Canadian history.

Xanadu, a Toronto-based photonic quantum computing company, said the funding is intended to support the establishment of advanced manufacturing facilities for fault-tolerant, utility-scale photonic quantum computers. Planned capabilities include heterogeneous integration of photonic chips, photonic integrated circuit packaging, wafer-level semiconductor testing and measurement, and quantum module assembly.

"With the Government of Canada's commitment through the Strategic Response Fund, we plan to move forward with establishing that infrastructure here at home, strengthening Canada's quantum supply chain and creating a foundation for future quantum data-centre deployment," said Dr. Christian Weedbrook, Founder and Chief Executive Officer of Xanadu.

Industry Minister Mélanie Joly said the investment is aimed at creating jobs and strengthening Canada's economic sovereignty, while Minister of Artificial Intelligence and Digital Innovation Evan Solomon cited the goal of transforming Canadian research into globally competitive businesses.

Xanadu said the manufacturing capabilities developed under the agreement could also apply to telecommunications, artificial intelligence hardware, and sensing technologies. The company was founded in 2016 and listed on public markets as the first pure-play photonic quantum computing company.