Quantum computing stocks climbed Thursday after the Trump administration reportedly moved to award $2 billion to nine companies in the sector, while taking a piece for themselves.
The Commerce Department has agreed to award International Business Machines Corp.
The awards mark a notable expansion of Washington's strategy of using federal funding not only to support strategic industries, but also to secure potential upside for taxpayers through government-held equity positions.
CHIPS Act Funding
The funding comes from the CHIPS and Science Act, which was designed to strengthen domestic semiconductor production and support early-stage technologies viewed as critical to U.S. competitiveness.
"With today's CHIPS Research and Development investments in quantum computing, the Trump administration is leading the world into a new era of American innovation," said Secretary of Commerce Howard Lutnick.
"These strategic quantum technology investments will build on our domestic industry, creating thousands of high-paying American jobs while advancing American quantum capabilities," Lutnick added.
The move follows prior Trump administration efforts to take stakes in strategically important companies, including Intel Corp.
Washington is seeking to reduce reliance on foreign supply chains and counter China's influence in advanced technologies like quantum computing.
The awards could provide non-dilutive capital, validation and policy support for smaller names such as D-Wave and Rigetti, while also reinforcing IBM's role as a larger incumbent in the emerging field.
D-Wave Confirms Award
D-Wave Quantum confirmed Thursday that it signed a Letter of Intent for $100 million in proposed funding under the U.S. CHIPS and Science Act.
As part of the final award agreement, D-Wave would issue $100 million in shares of its common stock to the Commerce Department.
"We believe that the U.S. government's strategic investment in D-Wave would advance the country's global leadership position in quantum computing," said Dr. Alan Baratz, CEO of D-Wave.
"We see this as a transformative moment for not just D-Wave, but also for quantum computing and the United States," Baratz added.
Quantum Stocks Rally
The following quantum stocks were climbing Thursday morning:
