Pasqal is ending its participation in the French defense quantum-computing program LSQUARE, also known as PROQCIMA, after completing what the company said were all of its technological objectives for the program’s first phase. The quantum-computing company said Monday that it is shifting its collaboration with French public authorities toward commercial applications and civil research and development.
Pasqal disclosed the change in a September 28 press release filed with the U.S. Securities and Exchange Commission. The company said its participation in the first phase of LSQUARE had been completed and thanked France’s Direction générale de l’armement, or DGA, within the Ministry of the Armed Forces for its support during that stage.
The announcement changes Pasqal’s role in one of France’s main public quantum-computing initiatives. France’s national quantum strategy identifies PROQCIMA as a government-backed program intended to develop sovereign quantum-computing capabilities, with Pasqal among five participating technology companies. The French government’s quantum strategy portal says the program’s ambition was raised in 2026 to two French universal quantum-computer prototypes with 1,000 logical qubits by 2032.
Pasqal said it has now been invited to participate in civil public-support programs that are still being defined. As an initial step, the French Secrétariat général pour l’investissement and the Direction générale des entreprises have asked the company to submit a research and development program focused on fault-tolerant quantum computing using neutral atoms.
The proposed civil program is intended to match Pasqal’s existing technology level and commercial maturity, according to the company. Pasqal said the commercial-led approach would provide additional support for its fault-tolerant quantum-computing roadmap beyond the scope of PROQCIMA.
The company’s shift follows technological progress reported earlier this year under the defense program. In early 2026, Pasqal said it demonstrated to DGA and scientific experts an initial capability to construct and operate key building blocks of a logical qubit under live conditions. The company described the demonstration as evidence of a repeatable capability aimed at advancing toward more fault-tolerant quantum architectures.
The French government has separately described PROQCIMA as a long-term partnership involving five companies using different quantum technologies, including Pasqal’s neutral-atom approach. The program was originally notified in March 2024, and the government said in 2026 that its objectives had been expanded as France accelerated its national quantum strategy.
Pasqal’s latest announcement places greater emphasis on commercial deployment as the company develops its fault-tolerant systems. The company already operates quantum-computing systems for industrial and research applications and has highlighted customers and partnerships spanning energy, financial services and advanced materials.
That commercial focus has also expanded in recent months. In September, Pasqal announced a partnership with USA Rare Earth and Riven Systems to use quantum machine learning in research on rare-earth separation technology. Earlier in the year, it launched a quantum-computing service in Saudi Arabia with Saudi Aramco and continued deployments and research collaborations in Europe and other markets.
The change in government collaboration comes shortly after Pasqal reported first-half 2026 results. The company said revenue rose 14% year over year to €4.9 million for the six months ended June 30, while QPU-related services revenue increased 34% to €3.9 million. Pasqal also reported €70.4 million of booked and awarded business as of June 30, although it recorded an operating loss of €59.2 million for the period.
Pasqal cautioned that participation in future civil public-support programs remains subject to their development and that statements concerning future programs and its technology roadmap are forward-looking. The company has not said that the proposed civil fault-tolerant computing program has been finalized or that specific funding has been awarded.
The immediate change therefore concerns the structure and focus of Pasqal’s relationship with French public authorities rather than the termination of its quantum-computing development efforts. The company is moving away from its first-phase participation in the defense program while seeking continued public support for civil fault-tolerant quantum computing and greater emphasis on commercial applications.
