Topline
Shares of quantum computing firms surged on Thursday after a report indicated the Trump administration would request stakes in exchange for federal funding, mirroring earlier deals reached with Intel and several rare earth mining companies.
Reports say the U.S. government could acquire stakes in quantum computing firms in exchange for federal funding.
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Key Facts
The Commerce Department is holding talks with at least three quantum computing firms, including IonQ, Rigetti Computing and D-Wave Quantum, which would grant equity to the agency in exchange for funding awards from the government, the Wall Street Journal reported.
Two other companies, Quantum Computing and Atom Computing, are also considering a similar deal, the report added.
Quantum Computing’s shares rose 9.8% on Thursday, adding to similar increases for IonQ (9.8%), Rigetti Computing (11%), D-Wave Quantum (20%), while Atom Computing is a privately held company.
What Do We Know About The Purported Talks?
The companies are reportedly vying for federal funding awards intended for “promising technology companies.” According to the Journal, the companies that agree to the deal could receive funding awards from the federal government worth at least $10 million each. It is unclear how much equity each company will have to give up in exchange for the award and if the deal will be structured similarly to the government’s stake in Intel, where it has no board representation.
What Other Equity Has The Trump Administration Taken?
Holding equity with the quantum computing firms would be the latest example of the Trump administration earning a company stake: President Donald Trump announced in August the U.S. would take a 10% stake—estimated at roughly $10 billion—in Intel, making the federal government the third-largest institutional shareholder in the beleaguered chipmaker. The Trump administration acquired a $400 million equity stake in rare earth miner MP Materials in July, adding to stakes in other miners Lithium Americas and Trilogy Metals. Trump also said the U.S. would hold a “golden share” in U.S. Steel, granting the federal government veto power over some corporate decisions, after announcing a partnership with Tokyo-based Nippon Steel.
Tangent
Earlier this year, Commerce Secretary Howard Lutnick told CNBC the U.S. government “should get an equity stake” for any money it invests in companies. Treasury Secretary Scott Bessent also addressed the Trump administration’s interventionist push, saying the Trump administration could take equity stakes in other companies in response to Beijing’s move to curb rare earth exports, noting: “When we get an announcement like this week with China on the rare earths, you realize we have to be self-sufficient, or we have to be sufficient with our allies.” Bessent, however, noted that such moves will only be limited to strategic industries, adding: “We do have to be very careful not to overreach.”
What Is Quantum Computing?
Quantum computers are seen as the next big frontier in computing as they can significantly outclass the performance of modern supercomputers. Earlier this week, Google claimed its experimental Willow quantum chip performed a complex physics simulation 13,000 times faster than the fastest supercomputers in existence today. Other companies like Microsoft and IBM have also touted major progress in developing quantum computers. However, real-world deployment of quantum computers is still believed to be years away.
Further Reading
Trump Administration in Talks to Take Equity Stakes in Quantum-Computing Firms (Wall Street Journal)
Source: https://www.forbes.com/sites/siladityaray/2025/10/23/quantum-computing-stocks-surge-as-trump-administration-reportedly-wants-stakes/
