QpiAI, an Indian startup focused on combining artificial intelligence and quantum computing, has raised $32 million in a new Series A round. The government of India participated as a co-investor, reports TechCrunch.
The funds will be directed towards developing industrial-scale quantum computers for the global market.
The government became one of the lead investors under India’s National Quantum Mission. Avataar Ventures also took part. The round valued the company at $162 million.
India bets on quantum computing
The new financing underscores India’s ambition to bolster its high-tech credentials. In April 2023 the government launched the National Quantum Mission, positioning the field as a strategic sector for the economy, science and social security.
The initiative’s main goals include:
- development of quantum computers — building intermediate machines with 50–1000 physical qubits within eight years;
- development of superconducting communication — satellite communications, intercity and multi-node networks, transmission based on quantum cryptography;
- development of sensors and materials — magnetometers and gravity sensors, superconductors, topological and semiconductor structures;
- formation of national infrastructure and a talent pool — opening four thematic hubs, and supporting startups, laboratories and academies.
The project’s total budget is 60.3 billion rupees ($750 million). Funding is allocated to research, development, infrastructure and training.
QpiAI’s plans
The Bengaluru-based company, with subsidiaries in the US and Finland, says it has built the country’s first fully functional quantum computer, QpiAI-Indus. It went live in April with 25 superconducting qubits.
The firm integrates artificial intelligence and quantum computing to optimise processes across sectors:
- manufacturing;
- industry;
- transport;
- finance;
- pharmaceuticals;
- materials science.
The company develops both specialised software and its own hardware to apply quantum solutions to real-world tasks — from discovering new materials to drug development.
“Quantum technologies can make AI truly sustainable,” said QpiAI founder and CEO Nagendra Nagaraja.
The company sees simulation, drug synthesis and materials discovery as key areas where the combination of AI and quantum computing provides a competitive edge.
“The space of possible configurations of a superconducting chip is very large. To obtain optimal qubits — and this is critically important when integrating thousands of qubits to create error-corrected logical qubits — AI plays a key role,” Nagaraja said.
QpiAI plans to roll out a 64-qubit quantum computer in November, with customer access in the second or third quarter of next year.
The company plans to start production in India in 2026 of hardware designed for this new type of computing. About 80% of components are currently assembled in-house.
The startup employs about 100 people, including 25 PhD specialists from Indian and overseas research institutions. Roughly 50 are based in the country. The company has about 20 clients, including the Government of India, which uses the infrastructure to test algorithms.
The company says it has been profitable for three years in a row.
Proceeds from the new round will fund entry into the markets of Singapore and the Middle East, the development of local manufacturing and the scaling of R&D. By 2030 the company plans to build a system with 100 logical qubits.
Other programme participants
QpiAI is one of eight startups selected for the National Quantum Mission. Each received an initial grant of up to $3.5 million. Programme support also covers:
- QNu Labs — quantum-secure networks;
- Dimira Technologies — cryogenic cables;
- PrenishQ — laser diodes;
- QuPrayog — optical atomic clocks;
- Quanastra — cryogenic systems and superconducting detectors;
- Pristine Diamonds — materials for diamond-based sensors;
- Quan2D Technologies — single-photon detectors for quantum communication.
“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,” said Ajay Choudhri, chair of the National Quantum Mission.
AI in India
Alongside quantum, India has in recent years stepped up the development of artificial intelligence as a driver of economic growth and national security. The government has crafted strategies and programmes at the national level, set up dedicated institutions and bodies for AI deployment, and launched projects across sectors.
In June 2018 the official think-tank NITI Aayog presented the National AI Strategy, laying the groundwork for subsequent years. It frames artificial intelligence as a tool for socio-economic development, with a focus on healthcare, agriculture, education, smart cities and infrastructure.
The strategy emphasises the principle of “AI for All” — broad and accessible use of the technology in the public interest. In 2021 NITI Aayog updated the framework, strengthening the focus on responsible and ethical AI.
In 2023 the IndiaAI Mission was launched — a centralised platform with a budget of about $1.25 billion. The initiative aims to develop infrastructure and data centres, support startups, and create a national cloud service for neural networks and an open AI model.
In parallel, India’s armed forces are actively adopting artificial intelligence in intelligence, surveillance, control of UAVs, cybersecurity and autonomous weapons systems.
The Ministry of Defence launched several pilot programmes, including an AI-based surveillance system on the borders and Project Udbhav, aimed at integrating neural networks into military doctrine. In 2023 DRDO presented its own AI developments, including autonomous robots and threat-detection systems.
Artificial intelligence is being actively deployed in healthcare (diagnostics, medicine), agriculture (precision farming, crop forecasting), finance (anti-fraud, credit scoring), and in education — via digital platforms and adaptive learning.
In August 2024, a group of researchers from India began using a Google AI model to detect tuberculosis by analysing coughs