Shanghai-based quantum computing startup Taiyi Quantum announced a new funding round on Saturday, bringing its total capital raised past 1 billion yuan ($140 million) within eight months of its founding as Chinese investors accelerate bets on scalable quantum hardware.
The latest financing round drew a combination of venture funds, state-backed investment platforms, and industrial capital, including Jinqiu Capital, Yunbai Capital, Chengdu High-Tech Vision Fund, and Lingang Frontier Investment. Existing investors, including Huakong Fund, Hengxu Capital, and Boyuan Capital, also increased their allocations in the company, which was established in January 2026.
Taiyi Quantum focuses on neutral-atom quantum architecture utilizing Ytterbium atoms, aiming to build scalable, fault-tolerant quantum computing systems. According to founder and Chief Executive Officer Fang Zhenghao, the startup will use the fresh capital to recruit international research talent, deepen system engineering and quantum error correction capabilities, and expand its open-source developer ecosystem.
In its initial eight months of development, the company achieved key engineering milestones, including integrating a full prototype system across optical, vacuum, control, and software modules within six months. The firm also achieved a real-time control feedback latency of under 10 microseconds for atomic rearrangement and globally open-sourced its proprietary quantum compiler, Luoshu.
The rapid capitalization coincides with Shanghai's broader policy initiative to cultivate high-tech industry hubs. In 2025, local authorities in Shanghai established a 15 billion yuan ($2.1 billion) future industry fund to provide patient capital for early-stage deep-tech ventures, while Xuhui District introduced targeted measures to support quantum hardware manufacturing, algorithms, and hybrid quantum-artificial intelligence integration.
Led by co-founder and Chief Technology Officer Dr. Liu Hongbin, Taiyi Quantum has assembled a team of nearly 100 researchers and engineers, including veterans from international institutions such as the Massachusetts Institute of Technology, Cambridge University, and the Center for Quantum Technologies in Singapore. The company is currently conducting joint research and proof-of-concept testing across five core sectors: nuclear engineering, petrochemicals, advanced materials, pharmaceuticals, and finance.
