U.S. Government Makes Strategic Moves in Quantum Computing

The United States is redefining its approach to supporting high-tech industries, signaling a powerful shift from traditional subsidies to direct government investments. According to The Wall Street Journal, the Trump administration is negotiating equity stakes in several quantum computing firms, aiming to secure technological advancements within American borders and mitigate the risk of technology transfer to other nations. This bold move is slated to inject at least $10 million into these firms, elevating them to the forefront of cutting-edge technology.

Quantum Firms on the Rise: Government Shares in IonQ and Rigetti

Sources indicate discussions with key players in the quantum realm, including IonQ, Rigetti Computing, and D-Wave Quantum, where the government is poised to become a shareholder in exchange for federal aid. This strategy is backed by the Office of Chips Research and is intended to bolster the U.S. competitive edge in a technology expected to revolutionize sectors ranging from pharmaceuticals to encryption.

The announcement has triggered a surge in the stock prices of these quantum companies, with post-market trading witnessing increases exceeding 17%.

From Subsidies to Shares: A New Era of Tech Policy

This pivot in policy aligns with the Trump administration’s broader strategy to fortify strategic industries through what might be termed “strategic holdings.” A notable precedent occurred in August when the U.S. government traded subsidies for a 10% stake in Intel, striving for a self-reliant semiconductor supply chain.

Similar strategic moves have been seen in the defense sector, where the Pentagon emerged as the primary shareholder in MP Materials to enhance rare earth magnet production. Furthermore, the acquisition of a significant