Quantum Computing Firms Lobby for $10M Each, Stocks Rebound Sharply

Retail Traders Brace for Major Moves Amid Reports of Trump Administration Considering Quantum Investments

  • Quantum computing firms are seeking approximately $10 million each from the U.S. government.
  • The Commerce Department, led by Deputy Secretary Paul Dabbar, is in funding discussions with these companies.
  • Potential government investment could involve taking equity stakes in participating firms.
  • Stocks related to quantum computing saw significant rebounds after reports of possible federal investment.
  • The quantum computing sector continues to attract both major tech companies and investor attention.

Several publicly listed quantum computing firms are actively lobbying for around $10 million each in federal funding from the U.S. government. Discussions have taken place with the Commerce Department, and potential equity stakes are being considered as part of a funding agreement.

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Deputy Commerce Secretary Paul Dabbar, formerly a quantum computing executive, is overseeing these talks. Companies involved include Rigetti Computing, IonQ, D-Wave, and Quantum Computing Inc., as well as privately-held Atom Computing. Recent trading activity saw the Defiance Quantum ETF (QTUM), which tracks quantum computing and machine learning companies, increase by 3% overnight following the reports, after falling 2.7% previously.

A Wall Street Journal report noted the government is considering taking minority equity positions as part of the deal. According to the report, funding could be provided through the Commerce Department’s Chips Research and Development Office. “The prospect of potential government investment is ‘exciting,’” said Quantum Computing Inc. CEO Yuping Huang. A spokesperson from Rigetti confirmed ongoing engagement with federal agencies, and D-Wave’s Allison Schwartz said the company aims to sell systems to the government for problem-solving and deliver returns on investment.

Quantum computing stocks have shown strong performances in overnight trading following the news. Shares of Rigetti climbed 15.6%, D-Wave rose 16.3%, Quantum Computing Inc. increased by 12.8%, IonQ was up 14.7%, SEALSQ rose 15%, and Churchill Capital Corp gained 9%. Churchill Capital, a special-purpose acquisition company (SPAC), is merging with quantum computing firm Infleqtion.

The interest in quantum computing stems from its ability to perform complex calculations much faster than classical computers, with potential applications in pharmaceuticals, materials science, and more. Major technology companies such as IBM, Google (from Alphabet), and Microsoft have also invested in this rapidly developing field.

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