The U.S. government is negotiating equity stakes in several leading quantum computing companies in exchange for federal funding, according to a Wall Street Journal report, signaling an expanded role for Washington, D.C., as a direct investor in the private technology sector.
Five companies — Atom Computing, D-Wave Quantum, IonQ, Rigetti Computing, and Quantum Computing — are either in discussions with or considering proposals from the federal government for at least $10 million each in funding, the Journal reported, citing people familiar with the matter. In return, the Commerce Department would receive shares or equivalent financial instruments in the firms.
The funding would come through the Chips Research and Development Office, which administers CHIPS Act resources within the Commerce Department. Commerce Secretary Howard Lutnick has reportedly reclaimed several billion dollars previously allocated to a technology research program established under the Biden administration, freeing up capital for new initiatives.
Deputy Commerce Secretary Paul Dabbar, a former quantum computing executive and Energy Department official, has been assigned to oversee the program. Dabbar co-founded and led Bohr Quantum Technology for four years before joining the administration. His former company will not be eligible for funding under the initiative.
Quantum computers are designed to perform calculations beyond the capabilities of traditional supercomputers, with potential applications in drug discovery, materials science, and other fields. Policymakers view quantum computing as strategically important in global technological competition between nations.
If finalized, the deals would provide immediate capital to American quantum computing companies struggling to secure funding, while potentially generating returns for taxpayers if the companies develop commercially viable products.
The initiative follows recent precedents in which the Commerce Department acquired a 9.9% stake in Intel Corp. by converting nearly $9 billion in grants to equity, and the Pentagon obtained a 15% stake in rare earth materials producer MP Materials.
