Former Microsoft Quantum CTO’s New Chinese-Based Startup Lands Pre-A Funding

Insider BriefTaiyi Quantum, based in Shanghai, announced the completion of a 300 million yuan — or about $44 million USD — Pre-A funding round, according to media and social media reports.The round was led by investors including Gaorong Venture Capital and IDG Capital, who were joined by Huakong Fund, Yunqi Capital, Dachen Caizhi, Boyuan Capital, SAIC Financial Holdings, Hengxu Capital, Yarui Capital, Qifu Capital and various institutions and industries such as the Electronics Fund, Jiemian News is reporting.The neutral atom quantum computing startup is led by Liu Hongbin, a former research scientists at Microsoft and ex-Principal Architect and Engineering Manager at Microsoft Azure Quantum. According to Hongbin’s LinkedIn profile, his accomplishments at Microsoft included the design of the full-stack quantum computing architecture, spanning quantum algorithms, error correction, classical-quantum hardware integration and developer APIs.Hongbin reportedly worked on Microsoft‘s initiative with Atom Computing, which takes an optically-trapped neutral atom approach to quantum computers.Taiyi uses a ytterbium-based neutral-atom approach, which means its quantum bits are encoded in individual ytterbium atoms held in place by laser light, rather than in fabricated solid-state devices or trapped ions. Neutral-atom systems can arrange many atoms in flexible patterns and control them with lasers, offering a potential path to scaling quantum processors while reducing some manufacturing challenges associated with chip-based qubits.Ytterbium offers several practical advantages for neutral-atom quantum computing, including a rich energy-level structure, stable nuclear-spin qubit states and optical transitions that can support precise laser control, measurement and error detection. Compared with more commonly used alkali atoms such as rubidium or cesium, ytterbium’s simpler electron structure can reduce some sources of noise and crosstalk, which may help with scaling larger, more reliable neutral-atom processors.The deal is attracting attention for a number of reasons beyond the Microsoft connection. Some experts and commentators are pointing out that the size of the raise is quite large compared to the relative newness of the startup — about six months old. The raise also attracted a number of major investors who are spread out across finance and industry, another sign of the increasing importance of quantum not just the raise for this particular startup, but, the broader Chinese quantum industry.TopicsShare Get the latest research, company news, and market intelligence every week. MENTIONED IN THE ARTICLEMicrosoft engages in the creation and licensing of software for both consumer and enterprise use. The company is renowned for its development of Windows operating systems and the Office suite designed for productivity. Microsoft's structure encompasses three major segments of roughly equal size: productivity and business processes, which encompasses legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, and Dynamics; the intelligence cloud, which includes offerings like Azure, Windows Server OS, and SQL Server; and more personal computing, which covers Windows Client, Xbox, Bing search, display advertising, and a range of Surface laptops, tablets, and desktops.Gaorong Capital is a venture capital firm that invests in early and growth-stage TMT companies, including frontier technologies and AI.IDG Capital functions as a venture capital entity that directs its investments across various developmental phases. The firm is inclined to invest in startups during seed, early, and later stages, while also expressing interest in growth-stage enterprises through buyout transactions.SAIC is a leading technology company providing digital transformation solutions, engineering, artificial intelligence, and immersive technologies. They offer services across various domains including sea, land, air, space, and cyber. They also provide government services, IT solutions, and professional support to various U.S. defense and federal agencies.More in Research 2026 © Resonance Alliance Inc.

All Rights ReservedDesigned by Resonance[ivory-search id=”2367594″ title=”Custom Search Form”]One of our team will be in touch to learn more about your requirements, and provide pricing and access options.Subscribe to our industry leading leading newsletter for the latest in quantum news and insights. Necessary cookies are always on to ensure the website works. Optional cookies help us understand how the site is used. Privacy Policy