Shares of Infleqtion Inc. (NYSE:INFQ) surged 25.4%, while D-Wave Quantum Inc. (NYSE:QBTS), Rigetti Computing Inc. (NASDAQ:RGTI) surged 17.65% and 14.58%, respectively, in Thursday’s pre-market trading session, amid reports that the Trump administration has announced a $2 billion investment in nine quantum computing companies.
The Commerce Department will also reportedly acquire equity stakes in each of these firms as part of the deal, as per the report.
Quantum Computing Inc. (NASDAQ:QUBT) and IONQ Inc. (NYSE:IONQ) also climbed 13.49% and 7.67%, respectively.
The U.S. government is fast-tracking its plans to stimulate the burgeoning quantum computing sector, reported the Wall Street Journal on Thursday.
IBM (NYSE:IBM), a quantum computing frontrunner, is set to receive half of the funding amounting to $1 billion. Chip manufacturer GlobalFoundries (NASDAQ:GFS) will receive $375 million, while the remaining firms, including D-Wave Quantum, Rigetti Computing, and Infleqtion, will each receive $100 million. Startup Diraq is slated for a $38 million investment.
Global Foundries and IBM shares climbed 14.79% and 6.69%, respectively, in the pre-market trading session.
The Commerce Department did not immediately respond to Benzinga‘s request for comments.
US Chips Act Funds Quantum Stakes
This reported financial injection is part of the Trump administration’s strategy to harness the transformative potential of quantum computing for scientific research, prioritizing it for economic and national security. The funding is sourced from the 2022 Chips and Science Act, which also allocates funds for early-stage technology projects.
The government will take minority equity stakes in each quantum-computing company, similar to past deals with companies like Vulcan Elements and MP Materials (NYSE:MP), though the Commerce Department has not revealed the size or structure of those stakes, as per the report.
The move follows similar reports in October about the Trump administration talking with several U.S. quantum computing firms to exchange federal funding for government equity stakes. Initial grants were expected to start at around $10 million per company, with firms such as Quantum Computing Inc. and Atom Computing reportedly evaluating similar arrangements.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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