Trump administration to acquire equity stakes in quantum computing firms
What's the story
The Trump administration is reportedly in talks with several quantum-computing companies to acquire equity stakes in exchange for federal funding, according to The Wall Street Journal. The plan is part of a broader strategy to invest in key sectors of the economy. Companies like IonQ, Rigetti Computing, and D-Wave Quantum are said to be considering this arrangement with the government.
Funding negotiations
Minimum funding awards of $10 million each
The quantum-computing companies are said to be discussing minimum funding awards of $10 million each from the US government. Other tech firms are also expected to compete for this funding, which is part of a broader effort by the Trump administration to become a shareholder in some companies. This move comes after earlier deals where the government took stakes in chipmaker Intel and rare-earth producer MP Materials.
Sector significance
Quantum computers are next-generation technology
Quantum computers are considered a critical next-generation technology, capable of performing complex computations at lightning speed. This could potentially revolutionize drug discovery, materials science, and overall economic efficiency. Deputy Commerce Secretary Paul Dabbar is leading the funding discussions with companies in this industry.
Industry response
Excitement over potential government equity stakes
Quantum Computing Inc. CEO Yuping Huang has expressed excitement over the government's potential equity stakes in companies within this industry. A Rigetti spokeswoman said their company is always in talks with the government about funding opportunities. D-Wave's head of government relations, Allison Schwartz, said they want to sell systems that can solve tough problems for the government and get a return on investment.
Application details
Funding applications will be considered by Chips R&D Office
The funding applications from these companies will be considered by the Chips Research and Development Office. The deals with quantum companies are still in the works and could change. A Commerce document soliciting funding applications states that these deals could include warrants, licenses to intellectual property, royalties, or revenue sharing, along with equity stakes.