The Trump administration is in discussions with several quantum computing companies about taking equity stakes in exchange for federal funding, according to a Wall Street Journal report.
Companies involved in the talks include IonQ (NYSE:IONQ), Rigetti Computing (NASDAQ:RGTI), and D-Wave Quantum (NYSE:QBTS), while others such as Quantum Computing Inc. (OTCQB:QUBT) and Atom Computing are considering similar arrangements, according to the Journal, citing anonymous sources familiar with the matter.
Under the proposed plan, the federal government would provide financial support, likely starting at a minimum of $10 million per company, while becoming shareholders in these firms.
The move is part of the Trump administration’s broader strategy to secure US supply chains for critical technologies and reduce reliance on China by converting federal grants into equity stakes, rather than traditional subsidies.
The initiative follows earlier government actions under Trump’s second term, such as a $400 million investment by the Defense Department for a roughly 15% stake in rare-earths producer MP Materials.
It has also taken a roughly 10% stake in semiconductor maker Intel, the only US-based company capable of producing advanced AI processors domestically.
Quantum computing leverages quantum mechanics to solve problems that classical computers cannot efficiently handle, but current machines still face challenges, including the need for substantial processing power to correct errors. As such, the development of the sector is expected to have significant economic and national security implications.
Shares of the companies named in the discussions rose following the news. D-Wave Quantum stock surged 21.6%, Rigetti Computing was up 15.4%, IonQ shares added 11.3%, and Quantum Computing was up 10.8%.