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14 Jan 2026
Bid from Quantum Computing, which is already acquiring Luminar's photonics unit, remains subject to bankruptcy court approval.
Quantum Computing, Inc. (QCi), the New Jersey-headquartered startup with a thin-film lithium niobate foundry operation in Arizona, looks set to acquire the lidar business unit currently belonging to bankrupt Luminar Technologies.
While the $22 million “stalking horse” purchase agreement remains subject to approval by the US Bankruptcy Court and any rival bids that emerge, the deal would see the bulk of Luminar’s operations transfer to QCi, which last month agreed to acquire Luminar’s “LSI” photonics business for $110 million.
Those agreements follow Luminar’s descent into Chapter 11 bankruptcy proceedings last year, the culmination of a tumultuous period for the automotive lidar pioneer including the shock resignation of CEO and founder Austin Russell, and the termination of a key supply deal by lead customer Volvo.
Strategic fit
While QCi’s business remains at an extremely early stage, with near-negligible sales revenues thus far, the startup was able to raise $500 million in a private placement of stock last year.
According to the firm’s latest quarterly report, for the three months ending September 30, QCi’s balance sheet included around $550 million in cash and short-term investments.
QCi’s CEO Yuping Huang said of the latest Luminar deal: “Being selected as the stalking horse bidder reflects our conviction in the strategic fit of these assets and our commitment to building a scaled photonics platform with real-world impact.
“LSI strengthens our core photonics design, packaging, and manufacturing capabilities, while Luminar brings proven expertise in system integration, software, and scaling complex optical technologies into production.
“Together, these assets would accelerate our ability to commercialize advanced photonic platforms today while building the operational foundation required for future quantum sensing and emerging applications.
“If completed, the transaction is expected to bring a group of outstanding engineering and technical personnel to QCi, whose experience and expertise we believe would support the execution of our strategy and long-term growth objectives.”
Quantum sensing
While QCi’s existing business targets the emerging quantum market with thin-film lithium niobate, Luminar had pioneered the use of 1550 nm lasers in its lidar systems, and acquired gallium arsenide and indium phosphide material expertise through its 2022 acquisition of California-based Freedom Photonics.
The company worked closely on lidar integration with several major auto manufacturers, but it was Volvo’s decision to deploy the technology on its “EX90” electric SUV that promised to bring Luminar’s business to scale.
However that relationship appeared to sour rapidly last year, culminating in Volvo’s decision to terminate the supply deal in November. Luminar’s most recent quarterly report, which covered the period up to September 30 and was prior to Volvo’s exit, showed that the lidar company posted an operating loss of $186 million on sales of $53 million in the first nine months of last year.
With cash assets rapidly running out, Luminar formally entered bankruptcy proceedings in December, as it agreed the sale of the LSI business to QCi.
QCi says that the two proposed transactions are consistent with its strategy to expand into future quantum sensing applications, by building scalable commercial platforms in adjacent sensing markets today.
“Lidar applications share many of the system-level requirements expected in next-generation quantum optical technology, and QCi believes acquiring a deployed optical platform would accelerate its path from research to fielded systems by adding real-world performance feedback loops, integration and operational experience,” announced the firm.
“This strategic foundation is intended to support QCi's long-term growth not only in quantum sensing, but also in computing, communication, and photonic AI areas.”
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