US President Donald Trump and his administration have decided to invest $2 billion into the Quantum Computing industry. Companies, including Rigetti (RGTI), IBM, and seven others, will all receive millions in investment in exchange for equity stakes for the administration.
The Trump administrationâs investment is part of a broader push to âshore up the domestic supply chain and counter China in crucial sectors. The quantum computing industry is growing exceedingly crucial in that effort, in tandem with the AI sector. Following Trumpâs visit to China, itâs clear the admin is working to ramp up those efforts to beat China to the punch.
The U.S. Department of Commerce said on Thursday that âIBM would receive $1 billion to set up a new company dedicated to manufacturing chips for quantum computers, while contract chipmaker âGlobalFoundries (GFS.O) would get $375 million to build a domestic factory capable of producing components for several different types â of quantum machines. Other firms, including D-Wave (QBTS), Rigetti Computing (RGTI), and Infleqtion (INFQ), will get about $100 million each, while Diraq will receive up to $38 million âto solve key technical hurdles that have held back the development of more powerful quantum computers, the Commerce Department added.
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In addition to the quantum company investments, Chip maker GlobalFoundries (GFS) is also receiving $375 million in funding. In return, the firm is giving the government a roughly 1% stake in the company. It is also setting up a new business focused on quantum. The adminâs decision has had a positive impact on the companies getting the investments as well. GFS saw its stock rocket 10% on Thursday morning, while Rigetti (RGT) and Infleqtion (INFQ) soared 23% and 30%, respectively.