The Australian government has invested $1 billion in the US-based quantum computer startup, PsiQuantum. 

The Commonwealth’s investment aims to establish the first commercially useful quantum computer in Brisbane, as part of the government's 'Future Made in Australia' policy.

Industry and Science Minister Ed Husic says the big investment is designed to counter ‘brain drain’ by retaining high-calibre Australian professionals within the country. 

“Australia’s $1 billion grant to quantum computing startup PsiQuantum will encourage more highly skilled and entrepreneurial Australians to remain in Australia,” Husic said this week.

PsiQuantum has emerged as a leader in the quantum computing world. 

The company, co-founded by Australians Jeremy O’Brien and Terry Rudolph, will use the funding to relocate its headquarters to Brisbane, in partnership with the federal and Queensland governments, each contributing $470 million. 

The move is expected to create up to 400 new jobs directly, adding to the company's existing global staff of 280.

But the decision has drawn serious criticism. 

Some question the feasibility of investing nearly $1 billion in a technology still in its infancy, with notable uncertainties and challenges ahead. 

Quantum computers use qubits in their processors that are highly unstable, and no commercial quantum computer has yet been achieved despite decades of research.

Still, Queensland Premier Steven Miles says the investment will pay off.

“Quantum will bring billions in economic opportunity to Queensland, which will deliver thousands of high paying tech jobs and the chance for Queenslanders to work in careers that will change the world,” he said. 

As part of the government’s investment, PsiQuantum will also start a climate research centre and partner with local suppliers and universities, ensuring a ripple effect across various sectors of the local economy.

The investment could strategically position Australia at the forefront of the next tech revolution, if the required breakthroughs are made to bring the technology into commercial reality.