US Dep’t of Commerce awards nine quantum computing companies $2bn in exchange for non-controlling equity stakes
The US Department of Commerce awarded $2.013 billion to nine quantum computing companies—including IBM, Global Foundries, and seven others—under the CHIPS and Science Act, requiring non-controlling equity stakes in return. Funding targets advancements in quantum hardware, addressing challenges like error rates and cryogenic systems integration, while reinforcing US leadership in quantum technology.
The US Department of Commerce announced $2.013 billion in federal incentives to nine quantum computing companies on May 21, 2026, under the CHIPS and Science Act. The recipients include IBM ($1 billion) and Global Foundries ($375 million), which will establish quantum foundries, alongside Atom Computing, Diraq, D-Wave, Infleqtion, PsiQuantum, Quantinuum, and Rigetti Computing, each receiving between $38 million and $100 million. The funding aims to accelerate research and development for critical engineering challenges, such as device reproducibility and photonic loss, while ensuring domestic quantum capacity growth. In exchange for the funds, the Commerce Department will receive minority, non-controlling equity stakes in each company, mirroring a 2025 deal where the government took a 9.9% stake in Intel for $8.9 billion. Secretary of Commerce Howard Lutnick framed the initiative as a step toward 'American innovation,' emphasizing job creation and technological leadership. Bill Frauenhofer of Semiconductor Investment and Innovation praised the 'portfolio approach,' highlighting the focus on discrete technological problems to strengthen US quantum capabilities. The announcement follows reports from October 2025 indicating the Commerce Department had explored equity-stake agreements with quantum firms like Rigetti, D-Wave, and Atom Computing. IonQ, another company previously in discussions, faced scrutiny in February 2026 from short seller Wolfpack Research, which alleged financial mismanagement linked to lost government contracts. The FT noted ties between several funded companies and the Trump administration, adding political context to the deal. Funding allocations reflect a strategic push to advance multiple quantum modalities, including superconducting and trapped-ion systems. IBM’s $1 billion will support a new superconducting quantum foundry subsidiary, while Global Foundries’ $375 million will establish a US-based facility for diverse quantum technologies. The initiative underscores the US government’s commitment to outpacing global competitors in quantum research and infrastructure development.
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