Key Highlights
- Charina Chou, COO of Google’s Quantum AI division, explained the federal funding included restrictions that would have hampered the company’s innovation timeline
- Specific requirements tied to the $2B initiative remain undisclosed to the public
- Nine organizations received funding commitments, including IBM, GlobalFoundries, Rigetti, PsiQuantum, and Quantinuum
- Notable absences from the recipient list also included Microsoft and IonQ
- Shares of GOOGL dropped approximately 2.51% to trade near $347.46 during Thursday’s session
Alphabet (GOOGL) has finally addressed the question on many investors’ minds: why did the tech giant decline participation in President Trump’s ambitious $2 billion quantum computing funding program? The explanation centers on maintaining development velocity.
At the Semafor Tech Summit held in San Francisco on June 10, Charina Chou, Chief Operating Officer of Google Quantum AI, revealed that the technology giant opted out because accepting the funds would have imposed constraints that conflicted with Google’s aggressive development strategy for practical quantum computing.
GOOGL stock experienced a decline of roughly 2.51% on Thursday, settling around $347.46 per share.
While the precise stipulations attached to the government funding remain confidential, Chou emphasized that Google maintains collaborative relationships with federal agencies through alternative channels and remains supportive of government-backed fundamental quantum research initiatives.
The $2B federal program was rolled out through non-binding letters of intent rather than finalized agreements. Its primary objective was to bolster America’s quantum computing infrastructure and counter China’s accelerating advancements in quantum technology.
In May 2026, the administration announced nine beneficiaries. Recipients included IBM (IBM), GlobalFoundries (GFS), Quantinuum, PsiQuantum, Rigetti Computing (RGTI), and Infleqtion (INFQ).
Major Quantum Players Missing from Recipients
Three significant industry leaders — Alphabet, Microsoft (MSFT), and IonQ (IONQ) — were conspicuously missing from the beneficiary roster. Prior to this week, no official rationale had been provided for these omissions.
Neither IonQ nor Microsoft has issued comparable public explanations regarding their exclusion from the federal quantum initiative.
The fact that three heavyweight quantum technology companies declined or were excluded from the program has sparked considerable discussion within the industry, particularly given their substantial resources and ongoing quantum investments.
Perspectives on Federal Investment in Quantum Tech
Pete Shadbolt, co-founder of PsiQuantum, supported government involvement in quantum development. He characterized public funding as entirely appropriate given the technology’s significant implications for national security infrastructure.
However, this perspective isn’t universally shared across the sector. Questions about whether government participation accelerates or impedes commercial quantum innovation continue to generate debate among industry stakeholders.
IBM’s quantum computing leader Scott Crowder provided a development forecast during the same conference. He projected that IBM would achieve its first commercially scalable quantum computing system by 2029.
This timeline positions IBM approximately three years away from a critical breakthrough — while still operating under preliminary agreements with the Trump administration’s quantum funding framework.
Alphabet has not indicated whether it might reconsider involvement in future federal quantum programs should the associated requirements be modified.
RGTI stock gained approximately 2.38% during Thursday trading, while IBM shares declined roughly 1.35%.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
