The US Department of Commerce announced that it has signed nine preliminary agreements under the CHIPS and Science Act to provide a total of US$2.013 billion in federal incentives to nine quantum computing companies. Unlike traditional government grant structures, the funding agreements include provisions allowing the US government to obtain equity stakes in the recipient companies. The federal government will acquire minority non-controlling ownership positions in the funded firms. The announcement triggered a sharp rally across the entire quantum computing sector.

IBM Takes Half the Funding, Government Receives Equity Stakes

Among the nine companies, IBM emerged as the biggest beneficiary. The US Department of Commerce plans to provide IBM with US$1 billion to build America’s first “pure quantum wafer foundry.” On the same day, IBM also announced that it would independently invest an additional US$1 billion to establish a standalone subsidiary named Anderon, headquartered in Albany, New York, focused specifically on manufacturing quantum processor chips.

GlobalFoundries was approved for US$375 million in funding to establish secure domestic quantum foundry facilities supporting multiple quantum technology pathways, including superconducting systems, ion traps, photonics, topological quantum systems, and silicon spin technologies.

The remaining seven quantum computing companies each received approximately US$100 million in funding: D-Wave Quantum, Rigetti Computing, Infleqtion, PsiQuantum, Atom Computing, and Quantinuum, while startup Diraq received up to US$38 million. These companies collectively represent a wide range of quantum computing approaches, including neutral atoms, silicon spin, superconducting systems, photonics, and ion traps.

US Commerce Secretary Howard Lutnick stated: “Through these CHIPS R&D investments, the Trump administration is leading the world into a new era of American innovation.”

Government funding in exchange for equity stakes is not the first such move by the Trump administration. Lutnick previously converted portions of CHIPS Act funding into ownership stakes representing nearly 10% of Intel, while also acquiring significant stakes in rare-earth mining company MP Materials. The same model is now being extended into the quantum computing industry. The US government will receive minority non-controlling equity stakes in each funded company, although the Department of Commerce did not disclose the exact ownership percentages or transaction structures.

Opinions within the industry remain divided regarding this approach. Some technology analysts argue that frontier technologies such as quantum computing carry risks too high for direct government equity investment. However, Lutnick believes this structure ensures taxpayers ultimately benefit from the success of these technologies. A senior Commerce Department official explained that the government is investing across multiple companies in order to “spread risk across different bets,” while also acknowledging that these investments may require many years before generating meaningful returns.

Quantum Computing Becomes Another Front in Global Competition

The deployment of this US$2 billion funding package reflects a fundamental shift in how quantum computing is positioned within global technological competition. In 2025, the global quantum computing market was valued at approximately US$5.8 billion. That figure is expected to grow to US$8.6 billion in 2026 and reach US$86.4 billion by 2036, representing a compound annual growth rate of approximately 26%. According to McKinsey data, investment into quantum technology startups reached US$12.6 billion in 2025 alone, with industry forecasts suggesting the market could potentially double again within the next few years.

At the current stage — before large-scale commercial applications have fully materialized — quantum computing is increasingly viewed as a strategic geopolitical asset. Once practical quantum computing becomes fully operational, quantum machines could potentially break the encryption systems currently protecting banking networks and government data. The United States, China, and the European Union have all committed substantial government funding toward quantum technologies, turning the sector into another major battleground in global technological competition.

From an operational perspective, the Trump administration’s funding originates from an R&D program under the 2022 CHIPS and Science Act, which had already been allocated US$11 billion. Last year, Lutnick revoked US$7.4 billion originally designated for a nonprofit institution and redirected part of those funds toward equity investment projects capable of generating returns for the government. The expansion of this strategy into quantum computing now represents part of a broader restructuring of the CHIPS Act framework.

IBM shares closed at US$251.23 on the day, rising US$26.32, or 12.43%, marking the company’s largest single-day gain since January 2025. Of course, a single-day rally does not determine long-term future performance, and quantum computing still remains far from large-scale commercial deployment. However, the market reaction on May 21 at minimum demonstrated that investors have officially incorporated quantum computing into the core narrative of the next global technological arms race.

Sources familiar with the matter also revealed that the Trump administration is currently advancing a new executive order targeting the quantum computing industry, while technology giants such as Microsoft and Google have continued increasing investments into the sector following recent breakthroughs in quantum technology.