Trump Administration Considers Equity Stakes in Quantum Computing Companies
Quantum computing stocks experienced a significant surge late last week. This surge followed reports that the Trump administration was contemplating acquiring equity stakes in several U.S. quantum computing companies. These companies include IonQ, D-Wave Quantum, and Rigetti Computing. As per the reports from the Wall Street Journal, the government was considering minimum funding awards of $10 million for equity positions in these strategically crucial technology firms.
This move is in line with the administration’s trend of investing in companies deemed essential to national security. In the past, they have invested in Intel and the rare earth minerals company MP Materials. Quantum computing is seen as the next big thing in technology, following the AI boom. It has potential applications in various fields such as drug discovery, finance, and national security.
However, the Commerce Department later refuted the claims of active negotiations with quantum firms. They stated, “We are not currently negotiating equity stakes with quantum computing companies.” Despite this denial, quantum stocks managed to hold onto their gains. Analysts noted that the government’s clear strategic interest in accelerating quantum development could still manifest through alternative support mechanisms.
Source: The Motley Fool