Xanadu, based in Toronto, builds on Photonic qubits, but with a different encoding than PsiQuantum: continuous-variable quantum information, stored in squeezed states of light rather than discrete qubit states. Its Borealis and X-series systems combine squeezed-light sources, programmable beamsplitter networks, and photon-number-resolving detectors on a chip.

This architecture ran some of the earliest demonstrations of quantum computational advantage on a specific sampling task. Xanadu also develops PennyLane, an open-source framework for quantum machine learning, making it a software vendor as much as a hardware one.