The U.S. government will acquire $2 billion in equity stakes across nine quantum computing companies, including a startup backed by a firm with ties to the Trump family. The Commerce Department announced letters of intent with the firms, triggering a surge in quantum specialists' stock prices Thursday.
IBM, slated to receive $1 billion, and GlobalFoundries, with $375 million, both saw pre-market trading gains exceeding 6%. D-Wave Quantum, taken public in 2022 by current Pentagon official Emil Michael, climbed over 20%. PsiQuantum, which counts 1789 Capital—a venture firm where Donald Trump Jr. is a partner—among its investors, is set to receive $100 million. This marks its largest U.S. government award to date. A person close to PsiQuantum indicated 1789 is a passive minority investor, uninvolved in operations.
Quantum Computing Investment Surges
Atom Computing, Infleqtion, Quantinuum, and Rigetti are also scheduled to receive $100 million each.
Diraq, another startup, will get up to $38 million, the Commerce Department stated. U.S. Commerce Secretary Howard Lutnick commented on the investments, stating they would "lead the world into a new era of American innovation." He added that these strategic quantum technology investments would build domestic industry, create high-paying jobs, and advance American quantum capabilities.
This initiative continues a trend by the Trump administration to intervene in markets, offering grants in strategic sectors like semiconductors and critical minerals in exchange for equity. Last year, the Commerce Department took a 10% stake in Intel by converting $2.2 billion in grants from the Joe Biden-era CHIPS Act, alongside $8.9 billion in federal grants already awarded. Smaller sums have since gone to companies such as Vulcan Elements, a rare earths startup also backed by Trump Jr.'s venture capital firm. Notably absent from the list was IonQ, a leading quantum company with significant investment from Cerberus, a firm co-founded by Donald Trump’s deputy secretary of war, Stephen Feinberg.
Challenges and Future Outlook
The U.S.
Quantum computers leverage atomic and subatomic properties to perform complex calculations faster than conventional machines. Significant engineering hurdles persist, however, particularly in making these machines less prone to errors. Companies continue to explore various technical approaches. The deals unveiled Thursday remain non-final, and the administration confirmed it is still soliciting proposals from other advanced tech firms. Intel faces a shareholder lawsuit concerning its deal with the U.S. government.
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