Key Highlights
- Nine quantum computing firms will receive $2 billion in federal funding through government grants
- IBM secures $1 billion, the largest allocation, and plans to contribute an additional $1 billion in matching funds
- D-Wave, Rigetti, and Infleqtion each allocated approximately $100 million; GlobalFoundries to receive $375 million
- Washington will acquire minority ownership positions in all participating companies
- Stock prices jumped dramatically, with gains ranging from 7% to 21% during premarket sessions
On Thursday, the Trump administration unveiled a $2 billion investment program targeting nine companies in the quantum computing sector. According to the Commerce Department’s confirmation, these agreements will grant the federal government equity ownership in each participating firm.
[[LINK_START_1]]IBM[[LINK_END_1]] emerges as the primary beneficiary, securing a $1 billion federal investment. In response, the tech giant has committed to investing an equal amount from its own resources, totaling $2 billion toward establishing America’s first dedicated quantum chip production facility.
GlobalFoundries, a semiconductor manufacturer, will collect $375 million under the program. Three smaller public companies—D-Wave Quantum, Rigetti Computing, and Infleqtion—are set to receive approximately $100 million each. The startup Diraq could secure $38 million.
Additional quantum technology startups expected to benefit from this funding initiative include Atom Computing, PsiQuantum, and Quantinuum.
Market Response
Public markets responded enthusiastically to the announcement. IBM and GlobalFoundries stock prices climbed approximately 7% in early premarket activity. Meanwhile, D-Wave, [[LINK_START_2]]Rigetti[[LINK_END_2]], and Infleqtion experienced more dramatic increases, jumping 15% or higher.
International Business Machines Corporation, IBM
D-Wave disclosed that its entire $100 million allocation will be structured as an equity transaction. The company’s recent market capitalization exceeded $7 billion. Both Rigetti and Infleqtion indicated their funding arrangements would follow comparable equity-based frameworks.
This capital originates from the Chips and Science Act of 2022, legislation that designated resources for emerging technology initiatives.
Federal Ownership Strategy
The current administration has previously pursued equity stakes in corporations deemed strategically significant. The government already holds close to a 10% position in Intel and has invested in rare earth mineral companies MP Materials and Vulcan Elements.
Commerce Secretary Howard Lutnick emphasized that these arrangements are designed to generate returns for American taxpayers. A senior official from the Commerce Department acknowledged that these investments may require extended timeframes to mature, noting that distributing capital among multiple entities helps mitigate overall risk exposure.
Sources indicate the administration is developing an executive order specifically addressing the quantum computing sector.
Understanding Quantum Technology
Quantum computers leverage quantum mechanical principles to solve certain sophisticated computational challenges far more rapidly than conventional computers. However, current quantum systems consume substantial computational resources addressing error correction, meaning they haven’t yet achieved net performance advantages over traditional computing systems.
IBM CEO Arvind Krishna has drawn parallels between quantum computing’s current state and where artificial intelligence chips stood ten years ago. “We think now the time frames have actually collapsed,” he remarked during a March interview.
Tech giants including Microsoft and Alphabet’s Google are also making substantial investments in quantum computing development, driven by recent technological advances in the field.
These funding agreements remain subject to finalization before any capital is transferred.
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