The Trump administration is reportedly in talks to take equity stakes in several quantum computing companies in exchange for federal funding. The move is the latest in a series of similar deals aimed at boosting industries that the government sees as critical to U.S. national security. The companies involved in the talks include IonQ, Rigetti Computing, and D-Wave Quantum. The news sent the stocks of these companies soaring.
This isn’t a new strategy for the Trump administration. Earlier this year, the government took a 15% stake in the rare earths company MP Materials and a roughly 10% stake in the chip giant Intel. In both cases, the government argued that it should share in the success of companies that benefit from public funding.
The targeted industries also reveal a clear focus on the technological and economic competition with China. The investment in MP Materials came after China restricted exports of rare earth elements, and the stake in Intel is part of the broader push to strengthen the U.S. semiconductor industry and win the AI race.
Now, it seems the government is turning its attention to quantum computing. This revolutionary technology, which could solve problems far beyond the reach of today’s supercomputers, is seen as the next major technological battleground. It has massive potential to transform everything from medicine to finance, but it also poses a huge cybersecurity threat if it falls into the wrong hands.
While the government’s growing interest in taking stakes in private companies is a major shift in policy, Treasury Secretary Scott Bessent has said they will be careful not to “overreach” into non-strategic industries.
