Quick Read
- U.S. quantum computing firms are lobbying for $10 million in government funding each, with equity stakes proposed as part of the deal.
- Deputy Commerce Secretary Paul Dabbar is leading discussions, aiming to route funding through the Chips Research and Development Office.
- Stocks like IonQ, Rigetti, D-Wave, and Quantum Computing Inc. rebounded sharply after reports of potential government investment.
- The Trump administration’s approach mirrors recent moves to acquire stakes in strategic tech firms, like Intel.
- Major investors and retail traders are positioning for further gains amid heightened sector interest.
Government Investment Sparks Quantum Stock Rally
In a dramatic turn for the quantum computing industry, shares of leading companies—including IonQ, Rigetti Computing, and D-Wave—rebounded sharply after reports emerged that the Trump administration is considering strategic investments in the sector. The surge followed a turbulent market decline, underscoring the sensitivity of quantum stocks to policy news and investor sentiment.
According to Asianet Newsable and corroborated by Wall Street Journal, Deputy Commerce Secretary Paul Dabbar has been spearheading funding talks with quantum firms. Dabbar, who brings firsthand experience as a former quantum executive, is reportedly in discussions with companies to secure approximately $10 million each through the Commerce Department’s Chips Research and Development Office. The unique twist: the government would receive equity stakes in exchange for its support, mirroring recent moves in other strategic industries.
Strategic Stakes: A New Approach to Tech Funding
This proposed funding mechanism is not unprecedented. Washington’s recent acquisition of a 10% stake in Intel Corp., following support from the CHIPS Act, set a precedent for direct government ownership in critical technology sectors. The same logic now extends to quantum computing—a field widely regarded as the next technological frontier, with potential to revolutionize industries from pharmaceuticals to cybersecurity.
Quantum companies are lobbying hard for inclusion. Alongside the publicly-listed players, privately-held Atom Computing is reportedly considering the prospect of government shareholding. Bohr Quantum, co-founded by Dabbar, is notably absent from the current roster, maintaining the focus on established firms like Rigetti, IonQ, D-Wave, and Quantum Computing Inc.
Industry leaders reacted with optimism. Quantum Computing Inc. CEO Yuping Huang described the prospect of federal investment as “exciting,” while Rigetti’s spokesperson emphasized their ongoing engagement with government funding opportunities. D-Wave’s Head of Government Relations, Allison Schwartz, highlighted the company’s aim to sell quantum systems to the government, not just for revenue, but to help solve complex national challenges.
Market Response: Retail and Institutional Interest
News of possible government investment triggered an immediate reaction in financial markets. Quantum computing stocks soared in overnight trading: Rigetti climbed 15.6%, D-Wave surged 16.3%, Quantum Computing rose 12.8%, and IonQ jumped 14.7%. SEALSQ and Churchill Capital also saw notable gains, the latter fueled by its pending merger with quantum firm Infleqtion.
Investor sentiment on platforms like Stocktwits shifted rapidly. While Rigetti’s outlook improved from ‘depressed’ to ‘bearish,’ other quantum stocks flipped to ‘bullish,’ with retail traders positioning themselves for what one user called “explosive moves.” The Defiance Quantum ETF (QTUM), tracking the broader quantum and machine learning sector, climbed 3% overnight after falling 2.7% earlier, reflecting heightened volatility and opportunity in the space.
Quantum Technology: Promise and Policy
Quantum computing remains in its infancy, but its promise is undeniable. By leveraging the principles of quantum mechanics, these machines can solve problems far beyond the reach of classical computers, potentially transforming drug discovery, materials science, and encryption. It’s no wonder that not only startups, but tech giants like IBM, Google, and Microsoft are racing to establish dominance in the field.
For the U.S. government, strategic investment in quantum computing is about more than technological advancement—it’s about safeguarding national interests in a world where data security and computational power are critical. The ongoing U.S.-China trade tensions and competition in rare earths highlight the stakes. By taking equity in quantum companies, Washington signals its intent to be more than a passive supporter; it wants a share in future successes, ensuring taxpayer money yields both technological and financial returns.
Retail traders, institutional investors, and policymakers are now watching closely. As the quantum sector pivots from speculative promise to tangible government backing, the next chapter could reshape not just markets, but the very architecture of technological progress in the U.S.
The Trump administration’s willingness to take equity stakes in quantum computing companies marks a strategic shift in how the U.S. approaches tech funding. By aligning government interests with corporate success, Washington aims to accelerate innovation while ensuring accountability and returns on public investment. If these deals go through, they may set a blueprint for future government involvement in emerging technologies, with quantum computing as the proving ground.