U.S. equities tied to quantum computing advanced in premarket trading on Thursday following a report that the Trump administration will distribute $2 billion in grants to nine firms active in the sector. The plan, which a media outlet said cites the Commerce Department, would also grant the federal government minority equity positions in some of the companies involved.
Under the arrangement described in the report, the Commerce Department has already agreed to allocate $1 billion of the package to IBM. The report named other allocations, including $375 million for GlobalFoundries and roughly $100 million apiece for D-Wave Quantum, Rigetti Computing and Infleqtion. A smaller award of $38 million was reported for the startup Diraq.
Shares of the companies cited in the report rose sharply before the market opened, with gains reported in the mid-single digits to the high teens across the group. The reported move toward direct financial support coincides with broader interest from the administration in technologies it views as important for future economic and security considerations, with artificial intelligence and quantum computing specifically noted as areas of emphasis.
The reported funding would be paid for using money set aside for early-stage technology initiatives under the 2022 Chips and Science Act. The media coverage also said that the transactions described in the report have not yet been finalized and therefore remain subject to completion and any additional approvals required.
The report additionally referenced previous instances in which the U.S. government took minority stakes in private firms, citing deals involving a magnet producer, Vulcan Elements, and a miner, MP Materials, as past examples of such arrangements.
One senior Commerce Department official, speaking to the media outlet, was quoted as saying that there is now "a better line of sign to quantum becoming a reality." The same report noted that the White House is working on an executive order focused on the quantum computing industry, according to people familiar with the matter.
While the announcement cited in the report outlines sizable awards to leading and emerging companies in quantum computing, the details as presented remain preliminary until the transactions are completed and any related approvals are secured.
Allocations cited in the report
- $1 billion reportedly earmarked for IBM
- $375 million reportedly earmarked for GlobalFoundries
- Approximately $100 million each reportedly for D-Wave Quantum, Rigetti Computing and Infleqtion
- $38 million reportedly for startup Diraq
The goods and services sectors most directly affected include quantum computing developers, semiconductor foundries and AI-related firms. Market participants are watching how federal participation via equity stakes could alter company capital structures and investor perceptions.