Several quantum computing firms have reportedly been having discussions with the Commerce Department to offer equity stakes in return for federal funding.
Companies such as IonQ, Rigetti Computing, and D-Wave Quantum are having talks about allowing the government to take equity stakes as part of deals to secure funding designated for auspicious technology firms, the Wall Street Journal (WSJ) reported on Wednesday, citing anonymous sources familiar with the matter. Other technology firms, including Quantum Computing (QCi) and Atom Computing, are also exploring similar arrangements, according to the outlet.
“QCi is aware of recent media reports regarding potential equity-based funding discussions involving the U.S. Department of Commerce. The company does not comment on market rumors or speculation,” a QCi spokesperson told the Daily Caller News Foundation. “QCi remains committed to advancing U.S. leadership in quantum technology and continues to explore opportunities to support national innovation and security priorities.”
“We are continuously engaging with the U.S. government on funding opportunities that advance quantum computing.Government investment has long been vital to maintaining America’s technological leadership — early public funding helped ignite the internet, GPS, and semiconductor industries,” a Rigetti Computing spokesperson told the DCNF. “The same holds true for quantum computing today. If the U.S. does not lead in supporting these breakthroughs, others will—posing significant risks to our economic competitiveness and national security.”
The Commerce Department, Atom Computing, D-Wave Quantum and IonQ did not immediately respond to the DCNF’s request for comment.
Deputy Commerce Secretary Paul Dabbar, who the Senate confirmed in June, is spearheading the funding discussions with the technology companies, the anonymous sources told the WSJ. Though, any potential deals with the quantum computing companies have yet to be finalized and are subject to change, the WSJ noted.
The report comes after the White House announced in August that the U.S. will take a 10% ownership stake in Intel under a deal with the U.S.-based chipmaker. Moreover, Commerce Secretary Howard Lutnick said on Aug. 26 that the Trump administration was weighing taking equity stakes in defense companies.
Quantum computers can be used to solve highly complex statistical problems that are far beyond the capabilities of today’s conventional computers, according to a March report from McKinsey & Company. These computers can be used in a variety of applications across several key industries, such as finance, transportation, pharmaceuticals and “green” technology, according to the report.
Quantum computing could account for almost $1.3 trillion in value by 2035, an April 2023 report from McKinsey & Company found. Shares in U.S. quantum computing firms jumped in premarket trading on Thursday following the release of the WSJ’s report, according to Reuters.
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