IonQ, Rigetti, D-Wave Discuss Federal Funding Deal with U.S. Government

TLDR

• The Trump administration is negotiating to take equity stakes in quantum computing companies including IonQ, Rigetti Computing, D-Wave Quantum, Quantum Computing, and Atom Computing in exchange for federal funding
• Each company would receive minimum funding awards of $10 million from Washington according to the Wall Street Journal report
• Quantum computing stocks surged in premarket trading with D-Wave up 14%, IonQ up 13%, and Rigetti up 11% following the news
• U.S. Deputy Commerce Secretary Paul Dabbar, a former quantum computing executive, is leading the funding discussions with the companies
• A Commerce Department official told Reuters they are not currently negotiating with any of the companies, contradicting the WSJ report

The Trump administration is in discussions with several quantum computing companies about taking equity stakes in exchange for federal funding. The Wall Street Journal reported on Wednesday that companies including IonQ, Rigetti Computing, and D-Wave Quantum are considering agreements that would make the government a shareholder.

Each company involved in the talks would receive minimum funding awards of $10 million from Washington. Other companies such as Quantum Computing and Atom Computing are also considering similar arrangements according to the report.

The news sent quantum computing stocks higher in premarket trading on Thursday. D-Wave Quantum shares rose 14% while IonQ gained 13%. Rigetti Computing stock increased 11% and Quantum Computing climbed 13%.

D-Wave Quantum Inc., QBTS

Reuters could not immediately verify the Wall Street Journal report. A U.S. Commerce Department official told Reuters in an emailed statement that the department is not currently negotiating with any of the companies. IonQ declined to comment while other companies did not respond to requests for comment.

U.S. Deputy Commerce Secretary Paul Dabbar is leading the funding discussions with quantum computing companies according to the WSJ report. Dabbar previously worked as a quantum computing executive and served as an Energy Department official.

Government Investment Strategy

The potential quantum computing deals follow a pattern of government investment in U.S. companies. Earlier this year Trump announced the U.S. would take a 10% stake in Intel by converting government grants into an equity share.

The administration also arranged for the Pentagon to become the largest shareholder in MP Materials, a small mining company. That deal aimed to boost output of rare earth magnets. The U.S. government also secured a golden share with certain veto rights as part of a deal allowing Japan’s Nippon Steel to buy U.S. Steel.

Quantum Computing Technology

Quantum computers use qubits which can exist in multiple states simultaneously. This allows them to process data much faster than traditional binary-based computers.

However the technology faces challenges. Qubits are sensitive to environmental disturbances which can cause high error rates. This sensitivity remains a barrier to widespread quantum computing adoption.

Major tech companies have made progress in quantum computing recently. In February Microsoft unveiled a new chip and said quantum computing is years away rather than decades. Google and IBM have also predicted that fundamental changes in computing technology are closer than previously believed.

The quantum computing companies involved in the government funding discussions operate in different areas of the field. They are working to develop practical quantum computing systems for various applications.

The discussions represent the latest government effort to support domestic technology companies. The Trump administration has taken an active role in corporate investments across multiple sectors. These deals aim to maintain U.S. competitiveness in emerging technologies.

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