Stock Markets May 21, 2026 07:30 AM

D-Wave Quantum Jumps After $100M CHIPS Act Letter of Intent

Planned federal award aims to speed delivery of large-scale annealing and gate-model systems amid a sector-wide funding push

By Sofia Navarro QBTS

D-Wave Quantum Inc. shares jumped sharply in pre-market trading after the company disclosed a Letter of Intent for $100 million in proposed funding administered under the U.S. CHIPS and Science Act. The planned award, part of a broader $2 billion quantum initiative, would support U.S. quantum R&D sites and accelerate delivery of advanced superconducting systems including a 100,000-qubit annealing machine and a 10,000-qubit gate-model system.

D-Wave Quantum Jumps After $100M CHIPS Act Letter of Intent
QBTS

Key Points

  • D-Wave signed a Letter of Intent for $100 million in proposed CHIPS Act funding administered by the Department of Commerce.
  • The planned award is meant to accelerate delivery of a 100,000-qubit annealing system and a 10,000-qubit gate-model system and support U.S. R&D sites.
  • The $100 million to D-Wave is part of a broader $2 billion federal package across nine quantum companies, triggering a sector-wide market rally.

Market reaction and funding details

D-Wave Quantum Inc. shares rose about +17.9% in pre-open trading following the company’s announcement that it has signed a Letter of Intent for $100 million in proposed funding under the U.S. CHIPS and Science Act, which is administered by the Department of Commerce. The planned award is intended to fund D-Wave’s U.S. quantum research and development facilities and to help speed the delivery of advanced superconducting quantum computers.

The company said the funding is intended to support efforts to deliver a 100,000-qubit annealing system and a 10,000-qubit gate-model system. Those projects are cited by the company as milestones that would advance the commercial readiness of its larger-scale quantum offerings.

Context within the federal program

This $100 million commitment to D-Wave is part of a wider $2 billion federal program allocating funds to nine quantum computing companies. Under the announced distribution, IBM is set to receive $1 billion and GlobalFoundries $375 million. D-Wave, Rigetti Computing, and Infleqtion are each expected to receive $100 million, while the startup Diraq is slated to receive $38 million. The awards form a sector-wide package and have contributed to a sympathy rally across quantum computing-related stocks.

The deals remain subject to finalization. According to the published framework, the U.S. government would take a minority equity stake in each of the participating quantum firms as part of the agreement terms.

Company filings and insider activity

Separately, D-Wave filed a Form 8-K with the U.S. Securities and Exchange Commission today. The company also had a Form 144 filed on May 20 indicating a potential sale of restricted securities by an insider. The filing itself signals a possible disposition, although the company has previously characterized similar filings as routine, tax-related transactions rather than discretionary insider selling.

Product status and intended benefits

D-Wave’s annealing quantum systems are already commercially available, while the company’s gate-model platform is described as targeting commercial viability once it reaches 10,000 physical qubits. D-Wave highlighted that larger-scale annealing hardware is expected to deliver greater performance gains for several use cases, including optimization problems, materials simulation, blockchain applications, and artificial intelligence workloads.

Broader market backdrop

The funding announcement arrived amid a constructive session for U.S. equities, where the S&P 500 gained +1.1%, the Dow Jones Industrial Average rose +1.3%, and the NASDAQ climbed +1.5%. Those market moves provided additional tailwinds for higher-beta technology names, contributing to positive sentiment in quantum computing stocks.

Conclusion

The confluence of a direct federal validation through a $100 million CHIPS Act commitment to D-Wave, the larger $2 billion sector-wide package of awards, and a risk-on market environment combined to push the company’s stock notably higher in pre-market trading. The structure of the announced program, including the proposed minority equity stakes for the federal government and the distribution of funds across multiple quantum companies, underscores a coordinated public policy effort to support commercial quantum development in the U.S.

Risks

  • The deals reported are not finalized - funding remains subject to completion of terms and agreements, creating execution risk for planned programs.
  • Under the proposed terms the U.S. government would take a minority equity stake in awardees, which could affect company ownership structures and future governance considerations.
  • A Form 144 filing on May 20 indicates a potential insider sale of restricted securities; while prior similar filings were described as tax-related, the filing introduces uncertainty around insider dispositions.

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