US Commerce Department secures $2 billion equity stakes in nine quantum computing firms
Letters of intent signed with IBM, GlobalFoundries, and PsiQuantum mark latest intervention in strategic technology sectors, though deals remain non-binding and some major players were excluded.
The US Commerce Department has signed letters of intent to acquire equity stakes worth a total of $2 billion across nine quantum computing companies, a move attributed to the Trump administration. The initiative, announced by Commerce Secretary Howard Lutnick, aims to bolster domestic innovation, create high-paying jobs, and secure the United States’ position in strategic technology sectors. Following the announcement, shares in several recipient companies rose significantly in pre-market trading, reflecting investor enthusiasm for the government-backed capital injection.
The largest allocations are directed toward established industry players, with IBM set to receive $1 billion and GlobalFoundries $375 million. Both firms saw their shares climb more than 6 per cent in early trading. Other recipients include Atom Computing, Infleqtion, Quantinuum, and Rigetti, each receiving $100 million. D-Wave Quantum, which was taken public in 2022 by Emil Michael, now a senior Pentagon official, was also an awardee and saw its shares rise by more than 20 per cent. Diraq, a smaller startup, is set to receive up to $38 million.
The deal sheet includes PsiQuantum, which is set to receive $100 million, representing its largest US government award to date. The company has secured partnerships with both Democratic and Republican administrations and previously raised capital from 1789 Capital, a venture firm where Donald Trump Jr is a partner. A source close to PsiQuantum stated that 1789 Capital acted as a passive minority investor with no operational involvement, while a spokesperson for Trump Jr previously told the Financial Times he had no role in government negotiations for the firm’s portfolio companies.
This intervention follows a precedent set last year when the Commerce Department converted $2.2 billion in grants under the Biden-era CHIPS Act into a 10 per cent stake in Intel, alongside $8.9 billion in previously awarded but unpaid federal grants. The Trump administration has continued this model of exchanging grants for equity in strategic sectors such as semiconductors and critical minerals. Intel is currently facing a shareholder lawsuit regarding the terms of its equity deal with the US government.
Notably absent from the list of awardees was IonQ, a leading quantum firm that has attracted significant investment from Cerberus, a private equity firm co-founded by Stephen Feinberg, the Deputy Secretary of War. The administration confirmed that the current letters of intent are not final and that it continues to solicit proposals from other advanced technology firms. The announcement comes as other nations, including the UK, increase their own investments in technology and related fields.
Quantum computing leverages properties of matter at atomic and subatomic levels to perform complex calculations faster than classical machines, though significant engineering hurdles remain, including error reduction and competing technical approaches. Secretary Lutnick described the investments as a step into a new era of American innovation, emphasising the goal of building domestic industry capabilities. The deals underscore the administration’s active role in shaping the capital markets for strategic technologies.
