As a Silicon Valley-based venture capitalist immersed in deep tech and an investor in quantum pioneers such as PsiQuantum, I’ve had a front-row seat to the quantum computing revolution. While Silicon Valley has traditionally dominated technological innovation, a new quantum leader has emerged: Chicago is establishing itself as the ‘Second City’ in the quantum revolution.
Chicago’s rise to the top in a field that may enable the world to solve its biggest problems in minutes — in the time it would take today’s supercomputers to do in millions of years — is a tale of a pioneering mindset. It has positioned the city to grab a large future share of the $850 billion in economic value quantum computing could create by 2040.
It’s the result of a perfect storm of visionary leadership, public-private partnerships, technology talent pipelines, mentors and investors — all of which are needed to create a thriving technology ecosystem. Furthermore, this work spans academia, industry and government.
The foundation for Chicago’s quantum journey began with world-class research institutions. The University of Chicago, Northwestern University and the University of Illinois System have long been at the forefront of quantum research. However, as early as 2017, the formation of the Chicago Quantum Exchange, or CQE, truly catalyzed the city’s quantum ambitions.
The CQE serves as an intellectual hub, connecting these academic powerhouses with national laboratories such as Argonne and Fermilab in the Chicago area. This collaborative approach has been crucial in bridging the gap between theoretical research and practical applications, a challenge that has long plagued the quantum field.
The citywide collaboration also extends to initiatives such as the Duality accelerator program, the first accelerator in the U.S. focused on quantum startups, and Polsky Deep Tech Ventures, an accelerator and venture center from the University of Chicago that provides a robust framework for innovation and commercialization.
Every flourishing technology ecosystem needs local government support, and what truly sets Chicago apart is the unprecedented level of state government support it has garnered. Gov. JB Pritzker has emerged as a champion for quantum technology, spearheading what some are calling a modern-day Manhattan Project.
The numbers speak for themselves: State government allocated $200 million in its capital budget for quantum initiatives, which helped secure an additional $275 million in federal funding. But that’s just the beginning. The state’s 2025 budget includes $500 million to create a quantum computing campus. This level of commitment is a calculated bet on the future of technology and the economy.
This aggressive strategy has put Chicago on the map, attracting even more investment opportunities from traditional venture capitalists. It also brings a host of other potential benefits, including the ability to influence national and international policy around quantum.
The most tangible evidence of Chicago’s quantum ascendancy may be PsiQuantum’s decision to build a large quantum campus on the city’s South Side. Every successful tech ecosystem needs startups to power innovations and often, the more, the better. However, you ultimately need pillar startups such as PsiQuantum, a Silicon Valley darling that has raised more than $700 million in funding.
The company’s proposed 300,000-square-foot facility at the former site of the U.S. Steel South Works plant is more than just a new office. It’s a symbol of Chicago’s transition from industrial powerhouse to quantum pioneer. The campus is expected to create thousands of jobs, accelerate a local talent infusion and generate up to $60 billion in economic impact.
While PsiQuantum’s move is a significant milestone, there is more to Chicago’s thriving quantum ecosystem. The city is home to several other groundbreaking quantum startups. Super.tech, acquired by ColdQuanta, provides groundbreaking quantum software development. MemQ, spun from University of Chicago research, is pioneering quantum interconnects, and EeroQ is pushing the boundaries of quantum bit technology. These companies illustrate the depth and diversity of Chicago’s quantum innovation landscape.
The city’s quantum workforce development strategy, which is crucial as job needs shift from science to engineering, has created a talent pipeline unique to the industry’s current state. This transition demands a blend of physics knowledge and engineering skills — a need Chicago is uniquely positioned to meet.
The region nationally ranks in the top three for physicists and materials scientists, with Illinois awarding 6,747 quantum-related degrees in 2023 alone. Chicago’s balanced educational ecosystem, combining the University of Chicago’s strong physics department with robust engineering programs at institutions such as Northwestern and the University of Illinois, creates an ideal talent pool for the evolving quantum industry.
But what’s truly innovative is the approach to accessibility. Many of the jobs being created by the quantum industry in Chicago will require only associate’s degrees and specialized training. This inclusive approach ensures that the benefits of the quantum revolution will be felt across all levels of society, not just by those with advanced degrees.
While Chicago’s quantum journey has put it miles ahead, the technology’s road ahead is long. Like many transformative technologies, quantum computing faces uncertainties and potential delays before it can deliver on its promises. Moreover, Chicago isn’t alone in its quantum ambitions. Other cities are also making plays for the designation as the nation’s quantum hub.
However, Chicago’s unique combination of academic excellence, government support and industry partnerships positions it well to overcome these challenges. As the city emerges as a formidable force in quantum technology, its “Second City” nickname takes on new meaning. Once associated with its resurrection after the Great Fire of 1871, it now represents the city’s leap from an industrial powerhouse to a quantum hub for the future.
Karthee Madasamy is a managing partner at MFV Partners, a Silicon Valley-based, early-stage deep tech venture fund.
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