How Spain’s ICFO Helped Build a Quantum Security Startup for the AI Era

In Barcelona, Quside is using photonic chip technology to generate what it calls high-quality, verifiable entropyâthe unpredictable input used to create encryption keys, secure communications, authentication credentials, and other cryptographic functions. As AI infrastructure expands and organizations prepare for the shift to quantum-safe cryptography, the company argues that demand for secure, hardware-based randomness is rising fast. Quside is also emerging as a broader example of how Spain is translating advanced research into commercially viable deep-tech companies. The startup was spun out of ICFO, a photonics and quantum research institute established in 2002 by the Catalan government and the Technical University of Catalonia. Since the spinoff, Quside has evolved into a commercial supplier serving customers across sectors, including defense, space, high-performance computing, and data centers. âWeâve shipped to more than 50 or 60 customers all over the worldâweâve got revenue,â Carlos Abellán, co-founder and CEO of Quside, said. He expects the company to reach profitability within 24 months. Why randomness matters now Modern cryptography depends on randomness. Encryption keys, digital signatures, secure sessions, initialization vectors, and many authentication processes rely on numbers that attackers cannot predict. Weak or biased randomness can undermine otherwise strong security systems. In engineering terms, entropy is the raw unpredictability that security systems start from. Many devices use a hardware source to generate a random seed, then software expands that seed into larger streams of random values. If the original source is weak, partially predictable, or poorly implemented, the entire chain can be compromised. That risk is not theoretical. Over the years, flawed random-number generation has been linked to exposed keys, vulnerable embedded devices, and compromised digital assets. Qusideâs pitch is that security systems should not only generate randomness but also verify the physical source producing it. That requirement is drawing new attention as companies begin migrating toward post-quantum cryptographyânew algorithms designed to resist future attacks from large-scale quantum computers. âThere are new algorithms, new security architectures, and more cryptography happening everywhere,â Abellán said. âThat means more need for entropy and randomness.â He also sees AI as another growth driver. Large AI clusters, autonomous software agents, and machine-to-machine workloads can significantly increase the number of secure transactions taking place inside data centers and across networks. âA lot more cryptography is needed,â Abellán said. âAgents are connecting to your website; theyâre doing it on your behalf. All of that requires cryptography.â The move to post-quantum cryptography may also increase hardware demands. During the transition, many organizations are expected to run classical and post-quantum algorithms in parallel, a hybrid approach designed to reduce risk while standards mature. That can increase key-generation workloads, certificate operations, and secure handshakes across infrastructure. That places Quside at the intersection of two fast-moving trends: the buildout of AI infrastructure and the long transition to quantum-safe security. Why photonics changes the equation Traditional hardware random-number generators often rely on electronic noise, oscillator jitter, or other analog effects inside silicon. Those methods can be effective, but their behavior can shift with temperature, voltage variation, device aging, or manufacturing tolerances. Quside instead uses photonic devices in which quantum effects tied to light emissions create inherently unpredictable behavior. The company argues that those optical processes can be modeled from first principles, making it easier to verify the source of entropy itself during operation. According to Silvia Carrasco, vice director for innovation, sponsored research, and public engagement at ICFO, photonics is particularly valuable because it connects quantum physics with deployable infrastructure. âPhotonics is where quantum theory meets real-world telecom infrastructure,â she told EE Times, citing fiber networks, chips, lasers, detectors, and secure communications systems. That miniaturization path is commercially important. Moving from laboratory optical benches to compact semiconductor devices lowers cost, improves reliability, and opens access to broader markets. Qusideâs roots lie in research carried out at ICFO, formally known as the Institute of Photonic Sciences. Based near Barcelona, ICFO has built an international reputation in photonics, quantum science, and applied research. According to Carrasco, Quside emerged from a combination of scientific depth, engineering capability, and structured commercialization support. âQusideâs core technology was built on years of in-house research at ICFO,â she said. âThe science was allowed to mature to the point where it was not just novel, but robust and engineering-ready.â The startup benefited from ICFOâs hands-on venture-building model, which goes beyond simply licensing patents. âICFO didnât just license IP; it actively incubated Quside through its Launchpad program, co-developing the business alongside the technology,â Carrasco said. She said that the technology came from collaboration between two ICFO groups: one focused on quantum science and another on industrial photonics engineering. That multidisciplinary model, she said, is increasingly important in turning scientific breakthroughs into manufacturable products. The result was not an overnight spinout. Carrasco described a long process of patenting, miniaturization, reliability testing, standards work, and market discovery before investors moved in. That slower path is common in deep-tech ventures, where hardware maturity matters as much as the original scientific advance. Spainâs emerging deep-tech model Much of Europe is known for strong scientific research but uneven commercial scale-up. Carrasco argued that Spain is pursuing a practical route forward, particularly in photonics and quantum technologies. She pointed to growing coordination among research centers, startups, public agencies, supercomputing resources, and industrial partners. âWe have built a strong ecosystem, especially around Barcelona/Catalonia, and ICFO is the anchor,â Carrasco said of Spainâs quantum and photonics cluster. But the opportunity extends beyond Catalonia. Spain has been increasing investment in semiconductors, digital infrastructure, quantum communications, and advanced manufacturing while also trying to attract more private capital into technology ventures. Quside offers one concrete example of that strategy producing results: Research conducted in Spain translated into exportable hardware sold into global markets. Qusideâs initial focus has been high-value markets where security and performance matter more than component cost. Those include defense systems, satellites, secure communications platforms, hardware security modules (HSMs), and advanced computing environments. Abellán said space and defense have become especially active segments. The company has also worked with larger ecosystem players. Abellán cited integrations involving HSM systems and cooperation around interfaces that allow external quantum entropy sources to feed network security equipment. Longer term, he said the company sees opportunities in automotive systems, broader data center deployments, and eventually consumer electronics. That roadmap reflects a common semiconductor pattern: Start in premium markets where performance justifies higher cost, then scale toward larger-volume applications as manufacturing matures. Quantum computing may still be years away from breaking mainstream encryption. But quantum technologies are already finding nearer-term uses in security, communications, sensing, and infrastructure hardware. That distinction matters. For Spain, success may not come first from building the worldâs largest quantum computer but from turning strong research into products that customers buy now. Quside began in a Spanish research institute, matured through venture support, and now sells specialized hardware into international markets shaped by AI growth and rising cybersecurity demands. For a country seeking a larger role in advanced technology, that may be just as important as any future quantum breakthrough. Read also: Openchip Bets on Distributed, Energy-Aware AI At ITF World 2025, Openchip CEO Cesc Guim outlined a vision for distributed, energy-conscious AI rooted in co-design, strategic partnerships, and European collaboration. Leave a Reply You must Register or Login to post a comment.