Canada backs Xanadu Quantum with $195 million loan to repurpose former soup plant

In a ceremony at a gutted Campbell’s Soup plant in Toronto’s west end, Minister Evan Solomon revealed a $195 million repayable grant to Xanadu Quantum Technologies, marking the government’s biggest single-company bet on quantum manufacturing. The funds will help transform the 158,000-square-foot former soup factory into a production hub for fault-tolerant photonic quantum computers, a project estimated at $893 million and projected to employ 275 workers.

Solomon highlighted the strategic importance of quantum capability for cybersecurity and national sovereignty, noting the global race among China, the United States and Europe. Xanadu, founded in 2016, uses light-based chips that function at room temperature, avoiding the heavy cooling required by other quantum designs. CEO Christian Weedbrook said the federal contribution is the full Canadian share, with additional provincial support still under negotiation. The investment follows Canada’s $360-million National Quantum Strategy and reflects a broader push to keep advanced tech firms domestic.