The securities of American research companies engaged in quantum technologies jumped after The Wall Street Journal reported that the White House administration showed interest in them. According to the publication, the U.S. government is negotiating the acquisition of stakes in several quantum companies in exchange for federal funding. The WSJ article mentions quantum computer developer IonQ, quantum processor developer Rigetti Computing, quantum technology developer D-Wave and industry software developer Quantum Computing.

Shares of IonQ were up 11% in trading on Oct. 23, Rigetti Computing was up 13%, D-Wave was up 18.6%, and Quantum Computing was up 10%.

According to the WSJ, the companies may receive at least $10 million each from the Office of Research and Development under the CHIPS initiative through the U.S. Department of Commerce. These potential investments fit into a new and rather unusual trend - direct government involvement in the capital of U.S. companies, including Intel and MP Materials, notes Yahoo Finance.

Context

This is not the first time the White House has been interested in quantum technologies. In 2018, then-first-term President Donald Trump signed into law the National Quantum Initiative Act, which provided $1.2 billion in federal funding for quantum physics research. Later, under Joe Biden, the CHIPS and Science Act authorized further funding for government quantum computing programs. During Trump's second term, a group of senators from both parties introduced a bill to extend the 2018 initiative with an additional $2.7 billion package to develop applications for quantum computing, Yahoo Finance writes.

In September, Rigetti was awarded a $5.8 million contract by the U.S. Air Force, and the Department of Energy announced a partnership with IonQ.

The discussion of new public stockholdings is part of a broader reform of CHIPS Act obligations that the Trump administration is preparing, the WSJ writes.

If it is possible to create fully functioning quantum computers, they will be able to solve tasks that would take billions of years for conventional ("classical") computers. However, such systems are still fragile and error-prone, which hinders the development of practical scenarios for the application of the technology.

Bank of America estimates that the quantum technology market could grow from $300 million in 2024 to $4 billion by 2030. In mid-October, shares of IonQ, Rigetti, D-Wave and Quantum Computing reached record highs after JPMorgan announced a 10-year, $1.5 trillion investment initiative in industries key to national security, including quantum technologies.

This article was AI-translated and verified by a human editor

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