TLDR
- Trump administration negotiating to become shareholder in quantum computing firms like IonQ, Rigetti, and D-Wave
- Federal funding deals would provide minimum $10 million per company in exchange for equity stakes
- Deputy Commerce Secretary Paul Dabbar leading negotiations with quantum computing industry
- Commerce Department denies currently negotiating despite WSJ report claiming active discussions
- Similar equity deals already completed with Intel and rare earth materials companies
The Trump administration is pursuing equity ownership in several quantum computing companies through federal funding agreements. The move extends the government’s recent strategy of becoming a shareholder in companies deemed critical to national interests.
IonQ, Rigetti Computing, and D-Wave Quantum are among the companies in discussions with the Commerce Department. Each company would receive at least $10 million in federal funding in exchange for government ownership stakes. Quantum Computing Inc. and Atom Computing are also exploring similar arrangements.
Deputy Commerce Secretary Paul Dabbar is overseeing the funding negotiations with quantum computing firms. Dabbar brings experience from his previous roles as a quantum computing executive and Energy Department official. His former company, Bohr Quantum Technology, will not be eligible for funding according to Commerce Department officials.
Conflicting Reports on Deal Status
A U.S. Commerce official told Reuters the department is not currently negotiating with any quantum computing companies. This statement contradicts the Wall Street Journal report describing active discussions. Reuters was unable to independently verify the claims about ongoing negotiations.
The funding would be distributed through the Chips Research and Development Office. Commerce Secretary Howard Lutnick recently reorganized this office and clawed back billions from Biden-era tech research initiatives. A Commerce document says deals may include warrants, intellectual property licenses, royalties, or revenue sharing alongside equity stakes.
Pattern of Government Investment
The quantum computing talks follow recent government equity agreements with other technology companies. In August, the federal government took a nearly 10% stake in Intel by converting $9 billion in grants to equity. This made the government Intel’s largest shareholder.
The Pentagon became the biggest shareholder in MP Materials to increase rare earth magnet production. The U.S. government also secured a “golden share” with veto rights in Nippon Steel’s purchase of U.S. Steel. The Energy Department obtained warrants to buy lithium startup shares at fixed prices through a government loan program.
President Trump and Secretary Lutnick argue taxpayers should benefit from company success when public funds provide support. The administration views these equity arrangements as fair compensation for financial backing and government endorsement.
Industry Reactions
Quantum Computing Inc. CEO Yuping Huang expressed enthusiasm about potential government equity participation in the sector. A Rigetti spokesperson confirmed ongoing engagement with the government regarding funding opportunities. D-Wave’s government relations head Allison Schwartz said the company wants to deliver systems solving complex government challenges.
IonQ and Atom Computing declined to provide comments on the discussions. The quantum computing deals remain incomplete and terms may change before finalization.
Quantum Computing Race
Major technology companies including IBM, Microsoft, and Google are investing heavily in quantum computing development. China is also pursuing quantum technology advancement. Google recently announced its quantum computer operates 13,000 times faster than traditional supercomputers.
Quantum computers can perform calculations in minutes that would take conventional computers years to complete. The technology shows promise for drug discovery, materials science, and chemical research. Quantum computing stocks surged earlier in 2025 but have declined in recent weeks.
Microsoft announced in February that quantum computing breakthroughs are “years, not decades” away. The federal funding discussions would represent major government support for the quantum computing sector.
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