Quantum computing stocks jumped Thursday after The Wall Street Journal first reported that the Trump administration plans to award roughly $2 billion in grants to nine quantum-computing companies, with an unusual twist: the U.S. government would also receive minority equity stakes in the businesses, signaling a far more aggressive push to secure America's position in what many view as the next major technological frontier.
The move would accelerate the administration's efforts to strengthen the emerging quantum industry, which has attracted surging investor interest following recent breakthroughs and growing expectations that quantum computing could become a transformative force alongside artificial intelligence.
At the center of the initiative is IBM, which according to the report is expected to receive $1 billion, making it the largest beneficiary of the package. The company remains one of the leaders in building quantum systems capable of solving highly complex problems far beyond the reach of traditional supercomputers.
Combined with AI advancements, quantum computing carries the potential to dramatically accelerate scientific discovery, strengthen national security capabilities, and reshape industries ranging from healthcare to defense, making it an increasingly strategic priority for the Trump administration.
IBM said it plans to invest an additional $1 billion of its own capital alongside the government funding to establish what it describes as America's first specialized quantum chip manufacturing facility. The initiative will operate under a newly formed IBM subsidiary called Anderon, which will focus on advanced quantum wafer production.
Anderon is expected to operate a 300-millimeter quantum wafer foundry designed to strengthen domestic supply chains while expanding America's leadership position in quantum infrastructure.
IBM said the facility aims to "accelerate American quantum innovation" and support advanced wafer manufacturing for a broader range of companies across the ecosystem.
Quantum computing executives increasingly argue the technology's commercialization timeline is shortening as breakthroughs accelerate.
"We think now the time frames have actually collapsed," IBM Chief Executive Arvind Krishna said in a March interview, comparing today's quantum development stage to where AI chips stood roughly a decade ago.
The funding package extends well beyond IBM.
According to the report, chipmaker GlobalFoundries (GFS) is expected to receive approximately $375 million, while publicly traded quantum firms D-Wave Quantum (QBTS), Rigetti Computing(RGTI), and Infleqtion (INFQ) are each slated for roughly $100 million awards. Startup Diraq is reportedly expected to receive $38 million.
Additional companies expected to participate include Atom Computing, PsiQuantum, and Quantinuum, reflecting the administration's strategy of spreading investments across multiple quantum technologies rather than concentrating capital into a single approach.
The funding is expected to come through the 2022 CHIPS and Science Act, legislation designed to strengthen domestic semiconductor manufacturing and support earlier-stage critical technologies.
Commerce Secretary Howard Lutnick has increasingly pursued unconventional public-private partnerships aimed at expanding domestic technology leadership. The Commerce Department previously secured ownership stakes in deals involving rare-earth magnet company Vulcan Elements and mining company MP Materials, while also taking an unusual nearly 10% position in Intel.
According to the report, the government would receive minority ownership stakes across participating quantum companies, potentially allowing taxpayers to benefit financially if the sector reaches its long-term commercial potential.
D-Wave said its entire $100 million package would come as an equity investment. Rigetti and Infleqtion indicated similar arrangements, although details surrounding ownership percentages remain undisclosed.
Some analysts have questioned whether government equity ownership in highly speculative technologies introduces unnecessary risks. Lutnick, however, has argued the structure provides long-term upside while diversifying exposure across multiple emerging technologies.
Officials acknowledged commercialization could still require years, but argue the industry has reached a much stronger position as research advances and investment accelerates.
"Everybody is excited about quantum because it is the next big thing," Dana Goward, president of the Resilient Navigation and Timing Foundation, said. "A lot of the expectations and hopes have yet to be realized."
One area attracting increasing attention is quantum's long-term potential to disrupt existing technologies, including navigation systems that currently depend on GPS infrastructure.
The administration is also reportedly preparing an executive order focused specifically on quantum technology, highlighting Washington's growing urgency around securing leadership in next-generation computing.
Private-sector investment continues building as well. Microsoft and Alphabet's Google have increased commitments to quantum research following recent breakthroughs, while venture funding continues flowing into the sector.
PsiQuantum, one of the companies reportedly expected to receive funding, raised $1 billion last year from investors that included 1789 Capital, a venture firm where Donald Trump Jr. serves as a partner.
While the deals still require formal completion, the reported initiative suggests Washington increasingly views quantum computing not simply as a speculative technology, but as a strategic national priority alongside artificial intelligence — one that could shape both economic competitiveness and geopolitical leadership over the coming decades.