US Government Takes Stakes In Quantum Computing Firms
The United States government plans to take equity stakes worth a combined $2 billion in several quantum computing companies as part of a broader push to strengthen domestic advanced technology industries.
The Commerce Department announced that it signed letters of intent with nine companies, including IBM and GlobalFoundries, triggering sharp gains in quantum computing stocks following the news.
Major Quantum Firms Receive Funding
Under the proposed agreements, IBM is expected to receive $1 billion, while GlobalFoundries is set to obtain $375 million.
Several quantum-focused firms will each receive up to $100 million, including PsiQuantum, Atom Computing, Infleqtion, Quantinuum, and Rigetti.
Meanwhile, Diraq is expected to receive up to $38 million.
Shares in several beneficiaries rose sharply after the announcement. Quantum specialist D-Wave Quantum gained more than 20 percent in pre-market trading.
Political Connections Draw Attention
Some of the companies involved have connections to prominent political and business figures.
PsiQuantum previously raised funding from investors including 1789 Capital, a venture capital firm where Donald Trump Jr. serves as a partner.
According to reports, a source close to the company said 1789 Capital holds only a passive minority investment with no operational involvement in PsiQuantum’s business activities.
Separately, D-Wave Quantum was taken public in 2022 by Emil Michael, who now serves in a senior Pentagon role.
Notably absent from the list was IonQ, another major quantum firm that has reportedly attracted investment from Cerberus, a company co-founded by Stephen Feinberg, currently serving as the US deputy secretary of war.
US Expands Strategic Technology Investments
The quantum initiative forms part of a broader strategy by the Trump administration to support strategic industries through direct government investment.
Commerce Secretary Howard Lutnick said the investments would strengthen domestic quantum capabilities, support innovation, and create high-paying jobs in the United States.
The government has increasingly used grants and equity stakes to support sectors considered critical to national competitiveness, including semiconductors, rare earth materials, and advanced computing technologies.
Last year, the Commerce Department converted billions of dollars in grants under the CHIPS Act into a 10 percent equity stake in Intel.
In addition, the administration has backed several smaller technology and resource firms viewed as strategically important.
Quantum Competition Intensifies Globally
The latest US funding push arrives as countries around the world accelerate investment into quantum technologies.
Quantum computers aim to exploit the unusual behaviour of matter at atomic and subatomic scales to solve highly complex problems much faster than conventional computers.
However, significant engineering challenges remain before large-scale practical quantum systems become commercially viable. Companies continue competing over different technical approaches while researchers work to reduce computational errors and improve stability.
The Commerce Department noted that the newly announced agreements are not yet final and that additional proposals from advanced technology companies are still under consideration.
Meanwhile, Intel continues facing a shareholder lawsuit related to its previous agreement with the US government.