President Donald Trump has proposed a strategy in which the federal government could take equity stakes in quantum computing firms in exchange for significant federal funding. This initiative, according to the Wall Street Journal, has the backing of the Trump administration, which is reportedly looking to secure investments in promising technology companies through such arrangements.
At least five companies are weighing the possibility of allowing the government to become a shareholder in exchange for funding. IonQ, Rigetti Computing, and D-Wave Quantum are currently engaged in discussions with the government, with some sources indicating minimum awards of $10 million each. Additionally, Quantum Computing Inc. and Atom Computing are reportedly considering similar arrangements. These discussions, however, are not yet formalized, and terms could still change as companies evaluate the potential risks of government influence over their operations.
The administration is set to leverage Deputy Commerce Secretary Paul Dabbar to extend its influence into the quantum computing sector. Dabbar, a former Energy Department official and co-founder of Bohr Quantum Technology, has a history of working in quantum networking systems. The DOE expects these systems to create new opportunities for scientific discovery. While the firm he previously headed is not eligible for funding, Dabbar will be leading industry discussions, likely promoting Trump’s deals as necessary to ensure US firms dominate in quantum computing. A Commerce Department official, however, denied the claims, stating that the department is not currently negotiating equity stakes with quantum computing companies.
Earlier this year, the Trump administration took a 10% stake in Intel to help fund its factories in Ohio. This development underscores the administration’s approach to increasing federal involvement in critical technology sectors. The strategy appears to be a continuation of the administration’s broader efforts to shape the development of emerging technologies through government collaboration and investment.