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СпутникиРНSpaceXРоскосмосNASATennessee Governor Bill Lee and Deputy Governor and Tennessee Department of Economic Development Commissioner Stuart C. McWhorter announced on Monday a $3 million funding commitment to support National Science Foundation (NSF) X-Labsquantum teams that choose to establish research, commercialization or business operations in Tennessee.
Theinvestmentis designed to help winning NSF X-Labs teams accelerate commercialization whileleveragingTennessee's nationally recognized quantum ecosystem, including Oak Ridge National Laboratory, theTennessee Valley Authority, EPB, other leading research universities and the state's growing innovation and manufacturing base.
“Over the past few years, Tennessee has earned the reputationas having one of the strongest quantum ecosystems in the country,” said Governor Lee.“This investment will help ensure that the companies developing tomorrow's quantum technologies will choose our state to grow, cultivate high-quality jobs and bring new innovations.”
The Tennessee Quantum X-Labs Challenge will support teams that commit to commercializing their technologies in Tennessee by providing the following resources:
“Tennessee is uniquely positioned to help quantum companies move from breakthrough research to real-world deployment,” said Mr. McWhorter. “We’re shifting our economic development strategy from simply recruiting projects to orchestrating ecosystems where companies and innovators can access the partners, infrastructure, and talent they need to succeed, and today’s announcement signals a clear message that we’re ready to do so.”
Beyond the state funds, LaunchTN is adding a package designed to help X-Labs teams put down roots in Tennessee. Any X-Lab awardee that relocates to the state, along with companies that emerge from the X-Labs program, will receive priority consideration for LaunchTN's SBIR/STTR Matching Fund, which augments federal non-dilutive awards with state capital, and for direct investment through InvestTN to companies that meet program eligibility criteria. Together, these programs give X-Labs teams a clear path from federal award to sustained growth capital, reducing the runway gap that early ventures face and helping them maximize the impact of their NSF funding in Tennessee.
This announcement builds on the $43 million investment that was approved and allocated in Governor Lee’s 2026 budget to further the state’s quantum infrastructure and will ultimately position Tennessee as a leader nationwide in attracting advanced energy, quantum networking, and technology commercialization to every corner of the state.