Xanadu Quantum Technologies Limited (NASDAQ: XNDU) announced it has received provisional approval for project funding of up to $10 million under DARPA's Quantum Benchmarking Initiative (QBI), according to a press release from the Toronto-based company.

The one-year contract extension builds on Xanadu's work in Stage B of the QBI program, which evaluates quantum computing architectures to determine which approaches can deliver utility-scale performance within realistic budgets and timelines.

Xanadu said it plans to use the majority of the funding to advance critical components of its research and development roadmap, while providing regular progress reports to DARPA for continued evaluation over the next 12 months.

The company's photonic quantum computing approach operates at room temperature, which the company says reduces cooling requirements compared to traditional quantum systems. Its latest photonic quantum computer, Aurora, is cited by the company as a demonstration of the scalability and networkability of its architecture.

"Ongoing participation in QBI reinforces Xanadu's goal of developing quantum computing solutions that deliver practical value across industries, including drug discovery, advanced chemistry, aerospace, defense, and AI," said Dr. Christian Weedbrook, Founder and Chief Executive Officer of Xanadu.

Successful completion of Stage B evaluations keeps Xanadu on a path through the QBI program, where quantum computer concepts undergo formal verification and validation. The company noted that the full $10 million is not guaranteed and may not be received on the expected timeline or at all.