By Tomi Kilgore and Hannah Pedone
The U.S. government is set to provide $2 billion in grants and take stakes in quantum-computing companies, the Wall Street Journal reports
Quantum-computing companies' stocks jump after a Wall Street Journal report indicated that the Trump administration is taking minority stakes in nine companies.
Shares of quantum-computing companies took flight Thursday, after the Trump administration reportedly struck deals with nine companies, including taking minority equity stakes.
A slew of companies including IBM, D-Wave Quantum, PsiQuantum, Infleqtion, GlobalFoundries and Diraq also announced the signing of letters of intent with the Department of Commerce for quantum research and projects.
IBM (IBM) looks to be the big winner in the deal, as the technology giant is set to receive $1 billion, according to a report by the Wall Street Journal. That is meant to speed up the development of specialized chips for quantum computing. The stock rose 3.6% at the open.
The company announced in a press release on Thursday that it will put the funding toward creating a pure-play quantum foundry, Anderon, which will operate as an IBM company and function as a 300-millimeter quantum wafer foundry.
GlobalFoundries' stock (GFS) was up 10% on Thursday morning, as the same report said the chip maker's deal with the Trump administration includes $375 million in funding.
Other companies in line to see $100 million in funding, according to the Journal's report, were Infleqtion (INFQ), whose shares soared 33.2% at the open; Rigetti Computing, whose stock (RGTI) jumped 21.8%; and D-Wave Quantum, which saw shares (QBTS) run up 22.3%.
D-Wave announced in a press release that the funding will help it scale its quantum systems and build out forthcoming research-and-development facilities.
The startup Diraq, meanwhile, said it will receive $38 million in funding.
&#34;With today's CHIPS Research and Development investments in quantum computing, the Trump administration is leading the world into a new era of American innovation,&#34; Secretary of Commerce Howard Lutnick said, according to a press release from IBM. &#34;These strategic quantum technology investments will build on our domestic industry, creating thousands of high-paying American jobs while advancing American quantum capabilities.&#34;
The Trump administration will take minority stakes in each of the companies, although the government didn't provide details of the size of each stake, the Journal reported. The funding for the deals comes from the Chips and Science Act, signed into law four years ago by President Joe Biden and administered by the Department of Commerce.
The quantum move would be the latest step by the U.S. government to take stakes in companies to help them compete in businesses deemed strategically important. The government previously made investments in rare-earth companies MP Materials (MP) and USA Rare Earth (USAR) and in chip maker Intel (INTC).
According to the Wall Street Journal's reporting, the Trump administration is working on an executive order related to quantum computing.
Quantum startups Atom Computing, PsiQuantum and Quantinuum are also in line to receive federal funding.
-Tomi Kilgore -Hannah Pedone
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(END) Dow Jones Newswires
05-21-26 0948ET

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The Trump administration plans to invest $2 billion in quantum-computing companies, taking minority stakes in nine firms, including IBM, which is set to receive $1 billion. Stocks of these companies surged, with Infleqtion up 33.2% and GlobalFoundries up 10%. The funding aims to enhance U.S. quantum capabilities and create high-paying jobs, as part of the Chips and Science Act. The administration is also preparing an executive order related to quantum computing.

Quantum stocks soar as the Trump administration looks to be buying in