A report that the administration is in talks for the government to take equity stakes in quantum computing companies is not necessarily something the Trump administration is considering, according to a person familiar with the matter.
The Wall Street Journal reported Thursday that several quantum-computing companies, including IonQ (IONQ), Rigetti Computing (RGTI), and D-Wave Quantum (QBTS), are in talks to give the Commerce Department equity stakes in exchange for federal funding. The paper said other companies, such as Quantum Computing (QUBT) and Atom Computing, are considering similar arrangements.
A Commerce Department spokesman told Yahoo Finance, “The Commerce Department is not currently negotiating equity stakes with quantum computing companies.”
The companies have reached out to the White House, and the administration is receiving lots of pitches for taking equity stakes, the person said. But the president wants to get a good return for the taxpayer, and any investment would be made using leftover funds from the Trump administration’s overhaul of the Biden administration’s CHIPS Act commitments. What is under consideration could be warrants or loans and may not necessarily be with the companies mentioned in the article.
Companies are pitching the White House for stakes after the federal government took a 10% stake in Intel (INTC) and formed a “golden share” partnership with US Steel Corp. and Japan’s Nippon Steel. The Defense Department has also acquired a stake in rare earths miner MP Materials (MP) and metals miner Trilogy Metals (TMQ), while the Energy Department acquired an equity stake in Lithium Americas (LAC).
Stakes acquired:
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Trilogy Metals (TMQ): 10%, plus warrants for an additional 7.5%
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Lithium Americas (LAC): 5%, plus 5% in a joint venture with General Motors
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MP Materials (MP): 15%
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Intel Corp (INTC): 9.9%
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Critical Metals (CRML): 8% (in discussions)
The government has taken an interest in quantum computing and views it as a critical industrial area, similar to rare earth minerals. In 2018, President Trump signed into law the National Quantum Initiative Act, pledging $1.2 billion in federal funding for quantum research.
Quantum computers are seen as important next-generation technology after artificial intelligence because they can quickly perform computations that would take current computers an extremely long time. The technology could increase efficiency and make it easier to identify new drugs, materials, and chemicals.
Quantum computing stocks soared Thursday. IonQ, the first pure-play quantum firm to go public, saw its stock climb 9% at the market open, while Rigetti and D-Wave jumped 11% and 18%, respectively. Quantum Computing shares rose nearly 10%.
A report that the administration is in talks for the government to take equity stakes in quantum computing companies is not necessarily something the Trump administration is considering, according to a person familiar with the matter.
The Wall Street Journal reported Thursday that several quantum-computing companies, including IonQ (IONQ), Rigetti Computing (RGTI), and D-Wave Quantum (QBTS), are in talks to give the Commerce Department equity stakes in exchange for federal funding. The paper said other companies, such as Quantum Computing (QUBT) and Atom Computing, are considering similar arrangements.
A Commerce Department spokesman told Yahoo Finance, “The Commerce Department is not currently negotiating equity stakes with quantum computing companies.”
The companies have reached out to the White House, and the administration is receiving lots of pitches for taking equity stakes, the person said. But the president wants to get a good return for the taxpayer, and any investment would be made using leftover funds from the Trump administration’s overhaul of the Biden administration’s CHIPS Act commitments. What is under consideration could be warrants or loans and may not necessarily be with the companies mentioned in the article.
Companies are pitching the White House for stakes after the federal government took a 10% stake in Intel (INTC) and formed a “golden share” partnership with US Steel Corp. and Japan’s Nippon Steel. The Defense Department has also acquired a stake in rare earths miner MP Materials (MP) and metals miner Trilogy Metals (TMQ), while the Energy Department acquired an equity stake in Lithium Americas (LAC).
Stakes acquired:
-
Trilogy Metals (TMQ): 10%, plus warrants for an additional 7.5%
-
Lithium Americas (LAC): 5%, plus 5% in a joint venture with General Motors
-
MP Materials (MP): 15%
-
Intel Corp (INTC): 9.9%
-
Critical Metals (CRML): 8% (in discussions)
The government has taken an interest in quantum computing and views it as a critical industrial area, similar to rare earth minerals. In 2018, President Trump signed into law the National Quantum Initiative Act, pledging $1.2 billion in federal funding for quantum research.
Quantum computers are seen as important next-generation technology after artificial intelligence because they can quickly perform computations that would take current computers an extremely long time. The technology could increase efficiency and make it easier to identify new drugs, materials, and chemicals.
Quantum computing stocks soared Thursday. IonQ, the first pure-play quantum firm to go public, saw its stock climb 9% at the market open, while Rigetti and D-Wave jumped 11% and 18%, respectively. Quantum Computing shares rose nearly 10%.
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