The Trump administration is in discussions with several quantum computing companies about granting the Department of Commerce equity stakes in exchange for federal funding, The Wall Street Journal reported Wednesday.
According to people familiar with the matter, companies such as IonQ, D-Wave Quantum and Rigetti Computing are in talks to give the government ownership shares as part of funding agreements. Quantum Computing Inc. and Atom Computing are considering similar deals.
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What Is the Commerce Department Proposing?
The discussions involve potential minimum awards of $10 million per company drawn from resources managed by the CHIPS Research and Development Office. Commerce Secretary Howard Lutnick reorganized the office as part of an overhaul of the 2022 Chips Act funding structure.
According to sources, Deputy Commerce Secretary Paul Dabbar, a former quantum computing executive, is leading the talks. A Commerce Department official said Bohr Quantum Technology, a company co-founded by Dabbar, is not eligible to receive funding.
In addition to equity stakes, a Commerce document indicates that final agreements could include warrants, royalties, revenue sharing or licenses to intellectual property.
How Are Quantum Firms Responding to Federal Investment Talks?
Executives in the quantum computing industry have expressed optimism about the government’s interest.
Quantum Computing Inc. CEO Yuping Huang described the government’s potential equity stakes in companies as exciting. A spokeswoman for Rigetti confirmed that the company is in talks with the government on funding opportunities.
Allison Schwartz, D-Wave’s head of government relations, stated that the company aims to offer systems that could help the U.S. government address complex computational challenges.
US Government to Acquire 9.9 Percent Stake in Intel
In August, the U.S. government agreed to acquire a 9.9 percent stake in Intel through an $8.9 billion investment in the technology company’s common stock to help achieve U.S. technology leadership and expand the domestic semiconductor industry.
In that same month, Lutnick said in an interview on CNBC’s Squawk Box that top Pentagon officials were “thinking about” whether the U.S. should acquire equity stakes in top defense contractors.
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