VCs embrace quantum computing in a crowded semiconductor market

VCs invested a record $2 billion in quantum computing during Q2, with 23 deals comprising a third of the semiconductor and datacenter sector's investments, revealed a new PitchBook report. Quantinuum's IPO was the standout event, accounting for nearly $19 billion in quantum exit value and marking the first public market test of the technology.

Oxford Quantum Circuits secured a £260 million Series C led by Bullhound Capital. Meanwhile, bigger players are showing interest in quantum technologies. Miraex, a quantum hardware startup, was acquired following Oxford Quantum Circuits' £258 million Series C. Overall, chip and datacenter investments declined for the second straight quarter, reaching $6.6 billion across 133 deals in Q2.

However, 2026 still looks set to surpass the 2025 peak of $21.6 billion. This decline was mainly in semiconductor chip design startups, which saw their weakest quarter since Q1 2025 at $1.7 billion. Companies like Etched, d-Matrix, and Ricursive Intelligence are making progress, but the presence of larger players like Nvidia, which holds 93% or 94% of the market, has investors questioning their chances.

David Yakobovitch, GP at DataPower Capital, queried whether the remaining market share can generate enough revenue for all competitors. Even promising challengers with strong momentum face a long journey, as developing chips often requires years of R&D. Despite the pullback, significant capital continues to pour into startups that can alleviate AI bottlenecks at scale.

Anthropic inked a $35 billion computing deal with Nvidia-backed Lambda, while Anthropic committed to a $45 billion, six-year agreement with Nscale for compute capacity access. Additionally, TensorWave raised $350 million in Series B funding in June at a $1.55 billion valuation, co-led by AMD Ventures and Magnetar.