The US President Donald Trump’s administration is in talks with a handful of quantum-computing firms to take equity stakes, according to a report by the Wall Street Journal. In exchange, they will receive Federal funding as the government becomes a stakeholder, as part of the agreement. Two people familiar with the matter spoke on the condition of anonymity that the White House is in talks with companies such as IonQ, Rigetti Computing, and D-Wave Quantum, among others.
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Trump Administration To Become Stakeholders in Quantum-Computing Firms
US Deputy Commerce Secretary Paul Dabbar, a former executive in the quantum-computing industry and a Former official at the Energy Department, is leading discussions on funding with companies in the industry, alongside Trump. The White House is zeroing in on critical industry segments that could boost the economy and provide jobs.
Reports suggest that the Trump administration would grant Federal funding to the quantum-computing firms around $10 million each. Companies such as Quantum Computing Inc. and Atom Computing are also eyeing the White House to become stakeholders. While the minimum funding would be $10 million each, the maximum amount is yet to be discussed.
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WSJ reported that many other quantum-computing firms are ready to talk to the Trump administration for funding. The White House funding of technological firms boosts investors’ confidence as it comes with bigger financial support. Traders also see the development as a stamp of approval with growing expectations of an upside.
The Trump administration’s stake in quantum-computing firms and funding them is a significant sign of industry growth. The sector is a critical next-generation technology, and the US aims to remain at the top spot. The US is receiving heavy competition from China in this sector. The Xi Jinping administration has funded several quantum-computing firms and is the highest in government investments.