The US government announced a $2 billion investment in nine quantum computing companies, with IBM receiving $1 billion.

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The Trump administration announced a $2 billion funding injection into the quantum computing industry, exchanging equity for subsidies and designating this emerging technology as a priority for economic and national security.

The U.S. Department of Commerce has reached funding agreements with nine quantum computing companies; IBM received $1 billion, making it the largest beneficiary. Commerce Secretary Howard Lutnick stated that this move aims to usher America into a "new era of innovation."

After the news was released, the stocks of relevant listed companies surged in pre-market trading Thursday. IBM rose about 6%, while D-Wave Quantum, Rigetti Computing, and Infleqtion each surged 15% or more.

The government will hold minority equity stakes in each funded company, continuing the equity investment model the Commerce Department previously used in projects such as Intel, rare earth magnet manufacturer Vulcan Elements, and mining company MP Materials. These transactions are yet to be formally completed.

Funding Allocation: IBM Takes Half, Multiple Startups Benefit

According to the Department of Commerce, this $2 billion funding comes from the special allocation for early-stage technology projects in the 2022 "CHIPS and Science Act."

IBM received $1 billion, the largest single beneficiary.

Chip manufacturer GlobalFoundries received $375 million. D-Wave Quantum, Rigetti Computing, and Infleqtion each received $100 million. Startup Diraq received $38 million. Other funded companies include Atom Computing, PsiQuantum, and Quantinuum, each expected to receive around $100 million.

IBM promptly confirmed it will cooperate with the U.S. government to establish the nation's first dedicated quantum wafer foundry, and announced the formation of a separate subsidiary, Anderon, headquartered in Albany, New York, which will operate a 300mm quantum wafer foundry.

IBM stated it will invest an additional $1 billion of its own funds, matching the government subsidy on a 1:1 basis. IBM CEO Arvind Krishna previously compared the current stage of quantum computing to the AI chip era ten years ago.

Equity for Subsidy: Commerce Department Continues New Model

This quantum computing investment continues the equity investment strategy promoted by Howard Lutnick since taking over the Commerce Department. The government will hold minority equity stakes in each funded quantum company; specific proportions and structures have yet to be fully disclosed.

D-Wave stated that its $100 million subsidy will be fully injected in the form of equity investment, and its recent market value exceeds $7 billion. Rigetti and Infleqtion indicated similar deal structures. The Commerce Department and other companies have not disclosed details of the equity size.

Previously, the Commerce Department held almost 10% of Intel shares through similar arrangements, and Intel’s stock subsequently rose sharply. A senior Commerce Department official stated that this spread-out investment approach is intended to diversify risk and acknowledged these investments may take years to show results.

Strategic Significance and Market Divergence

The Trump administration regards quantum computing as a dual priority for economic and national security. Quantum systems theoretically can break current encryption systems, drive post-quantum cybersecurity, and have potential applications in secure communications, advanced sensing, and intelligence systems. Combined with artificial intelligence, quantum computing is expected to accelerate research in materials science, drug development, and energy systems.

The Wall Street Journal quoted sources as saying that the Trump administration is currently drafting an executive order specifically targeting the quantum industry. Microsoft and Google parent company Alphabet have also ramped up investment in the field following recent quantum technology breakthroughs.

However, the market is sharply divided on the prospects of quantum computing.

Dana Goward, chairman of the Resilient Navigation and Timing Foundation, stated, "Everyone is excited about quantum because it’s the next big thing, but many expectations and visions have yet to be realized." Some technology analysts believe that government equity investment in high-risk fields such as quantum is controversial, but Lutnick insists that the deal structure will ultimately benefit taxpayers.

It’s worth noting that quantum computing remains in its early stages, with high technical difficulty and expensive costs. Senior Commerce Department officials also admitted that investment returns could take years to materialize.

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