Microsoft has recently ended its quantum computing operations in Australia, shutting down its research facility at the University of Sydney after a seven-year collaboration. The company plans to move its quantum research and commercialization efforts to its headquarters in Redmond, Washington.

In 2017, the University of Sydney partnered with Microsoft to create a quantum research hub at the $150 million Sydney Nanoscience Hub. Despite this partnership, Microsoft has decided to centralize its quantum engineering resources in Redmond to speed up the transition from research to product development.

Employees at the University of Sydney’s facility were offered relocation packages, but most chose to stay in Australia and continue their research independently. Among them is Professor David Reilly, a joint employee of the university and Microsoft, who led the development of a qubit control chip in 2021.

Microsoft stated to Enter Quantum: “Organizational and workforce adjustments are a necessary and regular part of managing our business. We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners. We recently made the decision to close our quantum facility at the University of Sydney as part of an ongoing consolidation of our quantum engineering resources as we accelerate the move from research to productization. The work that the team previously did in Sydney will move to the core team who are leading our quantum efforts globally.”

Despite the move, Microsoft remains committed to quantum computing and using quantum technology to solve complex problems.

Meanwhile, Australia is making significant strides in quantum research and development. The country released its national quantum strategy in May 2023. Additionally, in April 2024, Australian authorities awarded PsiQuantum $617 million to develop what could be the world’s first fault-resistant, utility-scale quantum computer at a site near Brisbane Airport.

These advancements highlight Australia’s growing influence in the global quantum research field, even as Microsoft consolidates its efforts in the United States.