The city will fund QFab at NYU and take a share of revenue from technologies developed using its equipment, making New York possibly the first municipal government to bet on quantum physics while still struggling with potholes
The City Goes Quantum
CITY HALL. Mayor Zohran Mamdani announced on Wednesday, October 14, that New York City will contribute nearly 29 million dollars in capital funding through the Economic Development Corporation to QFab, a 23,000-square-foot quantum technology lab at 770 Broadway run by New York University, according to amNY’s report on the city’s investment in the NYU quantum lab. In exchange, the city will receive 15 percent of the revenue that NYU’s central administration earns from technologies developed using city-funded equipment at the facility. Officials described the revenue share as a first for New York City.
The announcement marks the first time New York City has invested directly in a field that, according to physicists, involves particles existing in multiple states at once, a concept that most New Yorkers already understand intimately from attempting to catch the G train.
The Deal
The facility, expected to open in 2030, will give researchers, students and companies access to equipment for building and testing quantum devices. NYU, led by President Linda Mills, is committing about 255 million dollars, bringing total funding to roughly 284 million dollars. The project is expected to support about 2,000 jobs, the city gets three seats on an advisory board, and more than 3,000 CUNY students are expected to benefit from training.
Juan de Pablo, executive dean of NYU’s Tandon School of Engineering, was also quoted in the announcement. City Hall staff, by all accounts, nodded enthusiastically throughout the technical portions of the briefing, in the manner of people who have just been told something important about Schrodinger’s cat and are hoping nobody asks them a follow-up question.
Quantum Physics For City Officials
To help the public understand the investment, a physics graduate student at NYU offered a simplified explanation. Normal computers use bits, which are either zero or one, she said. Quantum computers use qubits, which can be zero, one or both at the same time. A city official listening nearby nodded and said that sounded like the city budget. The student said that was not quite the same. The official said it was, from where he sat.
Another explanation, offered by a professor, compared quantum computing to New York real estate. In both, he said, something can be in two places at once, nobody fully understands the rules, the costs are enormous and investors are convinced it will all pay off in about ten years.
The Revenue Share
The most novel feature of the deal is the 15 percent revenue share. New York City has previously taken equity stakes in projects but has not, officials said, taken a share of intellectual property revenue before. Supporters argue it allows taxpayers to benefit if public money helps create valuable technology. Critics may wonder how much revenue will actually materialize, given that quantum technology remains at an early stage and commercial breakthroughs could be years or decades away.
A budget analyst in Lower Manhattan offered a cautiously optimistic view. If quantum computing takes off, he said, the city could receive meaningful revenue. If it does not, the city still gets a lab, jobs and trained students. Either way, it is more interesting than most things in the budget. Last year I spent three weeks analysing parking meter revenue.
New York As A Tech Hub
New York has spent years trying to strengthen its technology sector, competing with Silicon Valley, Boston and other hubs for talent, investment and research. Quantum technology, which governments and companies around the world are pursuing for its potential in computing, communications and sensing, is one of the most competitive fields. A dedicated fabrication facility in Manhattan could help New York attract researchers and start-ups in a sector where physical infrastructure, clean rooms and precision equipment are essential.
The Commuter Perspective
Not all New Yorkers were immediately convinced. A straphanger waiting for a delayed train at Union Square, a few blocks from the future lab, said he supported science but had questions about priorities. They are investing in quantum computers, he said, looking at the arrival board, which displayed a time that had not changed for ten minutes. Meanwhile, this train exists in a state of being both coming and not coming. Maybe the physicists can study that first.
The Long Horizon
With the lab expected to open in 2030 and commercial quantum technology still years away, the investment is a long-term bet. That makes it unusual in city politics, where the pressure is usually to deliver results before the next election. Supporters see that as a strength: a willingness to invest in the future rather than just the present.
The Last Word
At a coffee shop near Washington Square Park, a group of NYU students discussed the announcement. One, a physics major, said she was excited. Another, studying economics, said she was impressed by the revenue share. A third, studying film, said he did not understand quantum physics but was glad the city was investing in something other than luxury condos. Then they all looked at the bill for their three coffees, which came to 23 dollars, and agreed that some things in New York remain impossible to explain, even with quantum physics.