Key strategic assets? The Trump administration considers investing in multiple quantum computing companies

The Trump administration may plan to elevate its intervention in key economic sectors to new heights by negotiating equity stakes in several quantum computing companies in exchange for federal funding support.

On October 22, media reports citing informed sources indicated that multiple companies, including IonQ, Rigetti Computing, and D-Wave Quantum, are in negotiations with the U.S. Department of Commerce. As part of the agreement to obtain specialized technology funding, the government will become a shareholder in these companies. It is reported that the minimum investment amount under discussion is $10 million per company.

This move is the latest example of the Trump administration's series of "government as shareholder" initiatives. Trump and Commerce Secretary Gina Raimondo have previously stated that since taxpayer funds provide financial support and official endorsement to businesses, the government should share in their upside gains. Previous cases include an agreement in August this year, where the government agreed to convert nearly $9 billion in grants to chip giant Intel into equity, thereby acquiring nearly 10% of the company's shares.

For investors, the government's potential equity stake brings dual signals to the rapidly growing quantum computing industry. On one hand, it is seen as a strong recognition of the strategic value of the industry, which may attract more capital attention; on the other hand, such deep government involvement could alter the competitive landscape and investment return logic of the industry, introducing new uncertainties to the market.

U.S. Government Equity Stake Becomes the New Normal

Linking government funding to equity stakes is becoming a prominent feature of the current U.S. government's industrial policy. The core logic is to allow the government (i.e., taxpayers) to share in the future success of the high-tech companies it supports through direct equity holdings.

This strategy has precedents prior to the current negotiations in the quantum computing sector. In August this year, the government reached an agreement with Intel to convert nearly $9 billion in previously promised chip bill funding into equity, making the government one of the largest shareholders of this chip giant.

Additionally, the government has also taken equity stakes in a rare earth materials producer through similar arrangements, and the Department of Energy has previously obtained warrants from a lithium mining startup in exchange for providing government loans, giving it the right to purchase shares at an agreed price in the future.

"Washington Booster" in the Quantum Race

This funding support is seen as one of Washington's first significant signals of support for the quantum computing sector. Quantum computers are regarded as the next-generation key technology capable of solving complex calculations that would take traditional computers billions of years to complete, potentially disrupting multiple industries.

Experts believe that this technological breakthrough will greatly accelerate the discovery process of new drugs, new materials, and chemicals, and enhance the operational efficiency of nearly all economic sectors.

Globally, competition in quantum computing is intensifying. Tech giants like IBM and Microsoft are investing heavily in this field, while China has also prioritized it as a national strategic focus. Just this Wednesday, Google announced that its quantum computer can operate at speeds 13,000 times faster than traditional supercomputers, with the potential to achieve breakthroughs in drug discovery and materials scienceAgainst this backdrop, the funding and equity injection from the Trump administration aims to provide a crucial "booster" for American companies in this global competition.

Transaction Details and Statements from Various Parties

According to informed sources, the funding negotiations with the quantum company were led by Deputy Secretary of Commerce Paul Dabbar. Dabbar himself was a senior executive at a quantum computing company, but a Commerce Department official stated that Bohr Quantum Technology, a company co-founded and led by Dabbar, is not a candidate for this funding.

The funding provided to the quantum company comes from the "Chip Research and Development Office," which has been reorganized by Secretary of Commerce Gina Raimondo. Currently, the relevant transaction has not been finalized, and the terms may still change. A document soliciting funding applications from the Commerce Department indicates that, in addition to direct equity investment, the agreement may also include various forms such as warrants, intellectual property licenses, royalties, or revenue sharing.

Responses from related companies regarding the prospect of potential government equity participation vary. Yuping Huang, CEO of Quantum Computing Inc., expressed that it is "exciting." A female spokesperson from Rigetti stated that the company is maintaining ongoing contact with the government regarding funding opportunities.

Allison Schwartz, head of government relations at D-Wave, stated that the company hopes to sell systems that can solve government challenges and provide a return on investment for the government. Atom Computing and IonQ declined to comment on this matter