Pasadena Quantum Startup Oratomic Raises $475 Million, Reaching $5.4 Billion Valuation

Local quantum computing startup Oratomic has raised $475 million in Series B financing, pushing its valuation to $5.4 billion, according to the law firm that represented the company in the transaction.

The financing, announced Oct. 8, brings Oratomic’s total funding to $775 million since its public launch in March. Wilson Sonsini Goodrich & Rosati disclosed the amount and valuation, while Oratomic separately announced the cumulative funding figure.

The round was co-led by ARCH Venture Partners, Spark Capital, Khosla Ventures, Index Ventures, General Catalyst and Bezos Expeditions, Wilson Sonsini said. Oratomic previously raised $300 million in a Series A round announced in July.

Oratomic said the new investment will support growth of its scientific and engineering staff, laboratory infrastructure and the systems required to build its quantum computers. Its announcement did not specify how many jobs would be created or how much of the funding would be spent in Pasadena.

The company is developing quantum computers using arrays of neutral atoms, which serve as quantum bits, or qubits. Focused laser beams hold and rearrange the atoms, allowing researchers to explore methods of correcting errors that can interrupt quantum calculations.

The Pasadena company has strong ties to the California Institute of Technology. Chief Executive Dolev Bluvstein was a visiting associate in physics at Caltech as of March, according to the university. Other members of the founding research team include Caltech physics professor Manuel Endres, theoretical physicist John Preskill and Hsin-Yuan (Robert) Huang. Caltech said in March that Huang, an assistant professor of theoretical physics, was on leave while serving as Oratomic’s chief technology officer.

In March, Caltech announced that a team of Caltech and Oratomic researchers had proposed a quantum error-correction method that could reduce the number of qubits needed for a useful machine from millions to as few as 10,000 to 20,000.

That finding is theoretical, not evidence that such a computer has been built. Caltech said the approach still faces substantial engineering challenges, including increasing the size of atomic arrays while keeping error rates low.

In its July funding announcement, Oratomic said it intended to focus on building a fault-tolerant quantum computer rather than developing intermediate commercial products. The October financing gives the company additional resources for that effort. Its October announcement did not establish a timetable for completing a working system, although Oratomic said at its March launch that its mission was to build utility-scale quantum computers by the end of the decade.