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Shares of U.S. quantum computing firms surged in premarket trading early on Thursday after a report said the Trump administration was in talks to acquire equity stakes in these companies in exchange for federal funding, in a move that mirrors the government\u2019s acquisition of a 10% stake in chipmaker Intel earlier this year.<\/p>\n
Reports say the U.S. government could acquire stakes in quantum computing firms in exchange for federal funding.<\/p>\n
AFP via Getty ImagesKey Facts<\/p>\n
The Wall Street Journal reported<\/a> that at least three quantum computing firms IonQ, Rigetti Computing and D-Wave Quantum, are engaged in talks to grant equity to the Commerce Department in exchange for funding awards from the government.<\/p>\n Two other companies, Quantum Computing and Atom Computing, are also considering a similar deal, the report added.<\/p>\n In premarket trading on Thursday, shares of IonQ rose nearly 8% to $59.76, while Rigetti Computing\u2019s shares surged 8.3% to $39.<\/p>\n The shares of D-Wave Quantum rose 12.3% to $30.64, while Quantum Computing was up by 9.21%.<\/p>\n What Do We Know About The Purported Talks?<\/p>\n The companies are reportedly vying for federal funding awards intended for \u201cpromising technology companies.\u201d 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\u2019s stake in Intel, where it has no board representation. <\/p>\n Tangent<\/p>\n Earlier this year, Commerce Secretary Howard Lutnick told CNBC<\/a> the U.S. government \u201cshould get an equity stake\u201d for any money it invests in companies. Treasury Secretary Scott Bessent also addressed the Trump administration\u2019s interventionist push, saying the Trump administration could take equity stakes in other companies in response to Beijing\u2019s move to curb rare earth exports, noting: \u201cWhen 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.\u201d Bessent, however, noted that such moves will only be limited to strategic industries, adding<\/a>: \u201cWe do have to be very careful not to overreach.\u201d<\/p>\n What Is Quantum Computing?<\/p>\n 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<\/a> 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.<\/p>\n Further Reading<\/p>\n