TLDR
- Trump administration is negotiating equity stakes in quantum-computing companies including IonQ, Rigetti Computing, and D-Wave Quantum in exchange for federal funding
- Companies are discussing minimum funding awards of $10 million each from the government
- Deputy Commerce Secretary Paul Dabbar is leading the funding discussions with quantum-computing firms
- The deals would make the government a shareholder in these companies, similar to recent arrangements with Intel and rare-earth materials producers
- A Commerce Department official stated they are not currently negotiating with any of the companies, contradicting the WSJ report
The Trump administration is in talks with several quantum-computing companies to take equity stakes in exchange for federal funding. The discussions represent a continuation of the government’s strategy to become a shareholder in companies it views as important to national interests.
THERE IT IS!
BREAKING: The Trump Administration is currently in talks to take stakes in "several" quantum computing companies.
This includes IONQ, Rigetti Computing, and D-Wave Quantum, according to WSJ.
The headline that we've all been waiting for has arrived. pic.twitter.com/L1mKLJTz5P
— The Kobeissi Letter (@KobeissiLetter) October 23, 2025
Companies including IonQ, Rigetti Computing, and D-Wave Quantum are negotiating with the Commerce Department about government ownership stakes. The talks include minimum funding awards of $10 million each for participating companies. Other firms such as Quantum Computing Inc. and Atom Computing are considering similar arrangements.
Deputy Commerce Secretary Paul Dabbar is leading the funding discussions with companies in the quantum-computing industry. Dabbar previously worked as a quantum-computing executive and Energy Department official. A Commerce Department official confirmed that Bohr Quantum Technology, the company Dabbar co-founded and led for four years, will not receive funding.
The funding would come from the Chips Research and Development Office. Commerce Secretary Howard Lutnick reorganized this office as part of his overhaul of how the agency manages 2022 Chips Act funding. He recently clawed back several billion dollars from a tech research initiative funded by the Biden administration.
A U.S. Commerce official told Reuters the department is not currently negotiating with any of the companies. This statement contradicts the Wall Street Journal report about ongoing discussions. Reuters could not immediately verify the report.
Previous Government Equity Deals
The quantum-computing discussions follow similar arrangements with other companies this year. In August, the government agreed to take a nearly 10% stake in Intel. The deal converted almost $9 billion in previously awarded grants to equity.
The arrangement would make the government Intel’s largest shareholder. The Pentagon also became the largest shareholder in MP Materials, a small mining company focused on rare earth magnets. The U.S. government won a “golden share” with certain veto rights in the Nippon Steel acquisition of U.S. Steel.
President Trump and Commerce Secretary Lutnick have said the government should share in a company’s financial gains. They argue that taxpayer money provides both financial support and a stamp of approval. The Energy Department received warrants giving it the right to buy shares of a lithium startup at a set price in exchange for a government loan.
Industry Response and Context
Quantum Computing Inc. Chief Executive Yuping Huang called the government’s potential equity stakes in industry companies exciting. A Rigetti spokeswoman said the company continuously engages with the government on funding opportunities. Allison Schwartz, head of government relations for D-Wave, said the company wants to sell systems that can solve government problems and get a return on investment.
IonQ and Atom Computing declined to comment on the discussions. The deals with quantum companies have not been completed and might change. A Commerce document soliciting funding applications says deals might include warrants, licenses to intellectual property, royalties, or revenue sharing in addition to equity stakes.
Competition in Quantum Computing
Companies from International Business Machines to Microsoft are investing in quantum computing. China is also investing heavily in the technology. Google announced Wednesday that it showed a quantum computer can run 13,000 times faster than classic supercomputers.
Quantum computers can quickly perform computations that would take today’s computers extremely long periods to complete. This technology could make it easier to find new drugs, materials, and chemicals. Experts say it could make every segment of the economy more efficient.
Shares of quantum-computing companies surged earlier this year but have fallen recently. The funding discussions would represent one of the first major signs of federal support for the quantum sector. In February, Microsoft unveiled a new chip showing quantum computing is “years, not decades” away.
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