Shares of IBM (NYSE:IBM) jumped 6.6% on Thursday following an announcement from the U.S. Commerce Department that the company will receive $1 billion to accelerate development in quantum computing.
The funding is one element of a larger $2 billion package directed at nine companies working on quantum technologies. The package includes arrangements that will provide the U.S. government with equity stakes in some of the recipient firms. Officials say the initiative is intended to hasten the Trump administration's efforts to support the nascent quantum computing industry and to strengthen domestic capabilities.
IBM is widely recognized as a key contender in building machines that exploit quantum mechanical phenomena to tackle problems that would be difficult for traditional supercomputers. The company’s work in quantum hardware and software is viewed in the context of broader technological advances - particularly in artificial intelligence - that together could speed scientific research and development. For policymakers, these combined capabilities have been framed as both economically important and relevant to national security priorities.
Part of the government's focus lies on specialized chips for quantum systems, reflecting a desire to shore up domestic supply chains for critical components. Chip manufacturer GlobalFoundries (NASDAQ:GFS) is set to receive $375 million under the program. Other recipients in the package are expected to receive roughly $100 million each, with the exception of startup Diraq, which is slated for $38 million.
The quantum computing sector has drawn heightened interest from investors and corporate buyers in recent months as the technology’s potential commercial applications come into view. That investor attention has coincided with the U.S. government's targeted funding push, which aims to advance both hardware development and the industrial base that supports it.
Summary
The Commerce Department's decision to allocate $1 billion to IBM is part of a $2 billion funding package for nine companies working on quantum computing. The awards include government equity stakes and emphasize development of specialized chips, with GlobalFoundries receiving $375 million and other firms getting roughly $100 million each, aside from Diraq at $38 million.