Key Takeaways
- Charina Chou, Google’s Quantum AI COO, stated that restrictive requirements tied to the funding would have hindered the company’s innovation timeline
- Specific terms and conditions of the $2B quantum initiative remain undisclosed to the public
- Nine organizations received funding commitments, including IBM, GlobalFoundries, Rigetti, PsiQuantum, and Quantinuum
- Other quantum leaders like Microsoft and IonQ were similarly excluded from the recipient roster
- Shares of GOOGL declined approximately 2.51% to trade near $347.46 during Thursday’s session
Alphabet (GOOGL) has finally addressed the question on many investors’ minds: why the tech giant was excluded from President Trump’s ambitious $2 billion quantum computing initiative. The explanation centers on maintaining development velocity.
During her appearance at the Semafor Tech Summit held in San Francisco on June 10, Charina Chou, Chief Operating Officer of Google Quantum AI, clarified that Alphabet deliberately opted out. She explained that accepting the federal funds would have imposed limitations that could compromise Google’s ability to advance its quantum computing roadmap at the company’s preferred pace.
GOOGL stock experienced a decline of roughly 2.51% on Thursday, settling around the $347.46 mark.
While the precise stipulations connected to the program remain confidential, Chou emphasized that Google maintains collaborative relationships with federal agencies through alternative channels and remains supportive of government-funded foundational quantum research initiatives.
The $2B federal program was announced through letters of intent rather than binding agreements. Its primary objective is to bolster America’s quantum computing infrastructure and counter China’s accelerating advancements in this strategic technology domain.
In May 2026, the White House unveiled nine organizations selected for funding consideration. The recipients encompassed IBM (IBM), GlobalFoundries (GFS), Quantinuum, PsiQuantum, Rigetti Computing (RGTI), and Infleqtion (INFQ).
Notable Absences from the Funding Recipients
Three prominent quantum computing playersâAlphabet, Microsoft (MSFT), and IonQ (IONQ)âwere conspicuously missing from the announced list. Until Chou’s recent remarks, no formal explanation had been provided for these omissions.
Neither IonQ nor Microsoft have issued comparable public statements regarding their exclusion from the federal quantum funding program.
The non-participation of these three industry heavyweights has sparked considerable discussion within the quantum computing community, particularly given their substantial financial commitments and technological leadership in the sector.
Perspectives on Government Support in Quantum Technology
Pete Shadbolt, co-founder of PsiQuantum, advocated for public sector involvement in quantum development. He characterized government funding as “really natural” given the technology’s critical importance to national security infrastructure.
However, this perspective isn’t unanimously shared across the industry. An increasingly visible debate is emerging around whether federal participation accelerates or potentially constrains commercial quantum innovation.
IBM’s quantum computing leader Scott Crowder provided a development forecast during the same conference. He projected that IBM will deploy its first commercially scalable quantum computing system by 2029.
This timeline suggests IBM is approximately three years away from achieving a significant technological breakthroughâwhile still operating under preliminary agreements with the Trump administration’s quantum initiative.
Alphabet has not indicated whether it might reconsider participation in subsequent government quantum programs should the attached requirements be modified.
Shares of RGTI climbed about 2.38% during Thursday trading, while IBM stock retreated approximately 1.35%.
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