TECH NEWS – The US Department of Commerce is preparing to provide more than $2 billion in CHIPS and Science Act funding to nine quantum computing companies, but this is not just a simple grant program. In exchange for the money, the government is expected to receive equity, with IBM emerging as the biggest winner through a $1 billion incentive aimed at developing quantum computing chips.

The US Department of Commerce intends to provide just over $2 billion in CHIPS and Science Act grants to nine quantum computing companies, according to The Wall Street Journal, with the government receiving equity in return. That makes the proposal more than a straightforward public funding package: it signals that quantum computing is now being treated not only as a strategic technology, but also as an area where the state wants a financial position. The move fits neatly into a broader American push to keep semiconductor manufacturing, artificial intelligence and the next major leap in computing power closer to national industrial strategy rather than leaving everything to market momentum alone.

The biggest winner of the proposal is IBM, which is set to receive a $1 billion “incentive” to develop quantum computing chips. The company has also said it will invest $1 billion of its own money into quantum semiconductor foundry Anderon, with the goal of establishing a specialized quantum chip manufacturing facility. That matters because quantum computing is not simply a matter of building faster conventional processors; it requires a different manufacturing, engineering and research environment, where infrastructure can be just as important as chip design itself.

IBM Gets The Biggest Slice, But It Is Not The Only Company In Line

GlobalFoundries is set to receive $375 million in funding, with the government receiving a 1% stake in the company in return. Diraq, a quantum computing startup, is expected to receive $38 million. Other quantum computing firms, including D-Wave, Rigetti Computing and Infleqtion, are expected to be awarded $100 million each. In the case of D-Wave, the company has already announced that it would issue $100 million worth of its common stock to the Department of Commerce once the deal is finalized.

D-Wave CEO Dr. Alan Baratz said the proposed agreement could matter not only for the company, but also for the United States’ broader position in quantum technology. “We believe that the US government’s strategic investment in D-Wave would advance the country’s global leadership position in quantum computing”, he said. Baratz added that the company sees this as a transformative moment not just for D-Wave, but also for quantum computing and the United States, which makes clear how much both companies and government officials now see at stake in this technological race.

Quantum Computing Could Become The Next Major Technology Weapon

Although the deals have not yet been completed, it is not difficult to see why a major government push into quantum computing, especially in exchange for equity, makes sense as part of the current administration’s technology-forward approach. The scientific and research possibilities of quantum computing are already intriguing on their own, but the financial potential may be just as significant. In a world where computing power has become one of the most desirable resources, getting an early foothold on the quantum ladder could become a long-term strategic advantage.

Quantum computing companies have attracted a wave of investor interest this year, as the technology is increasingly seen as being close to developing into practical solutions with the right amount of funding. Speaking to The Wall Street Journal earlier this year about that investor attention, Wasiq Bokhari, CEO of quantum computing company Pasqal, said: “People are realizing that quantum computing is only a few years behind AI.” He added: “We feel like it is a good time for us to be able to go out and tell our story.”

The $2 billion public funding package is therefore not just a research injection, but a signal that the United States does not want to fall behind in building the industrial base for the next major computing technology. Quantum computing is still, in many ways, a promise rather than a mass-market reality, but government money, equity-backed support and major corporate investment together show that Washington wants to establish its position early. If quantum technology really does become the next great leap after AI, these agreements may later be seen as important foundation stones.

Source: PC Gamer