The US will purchase shares in and invest $2 billion in quantum computing businesses

The Wall Street Journal first reported, citing the Department of Commerce, that the United States would invest $2 billion in grants in exchange for ownership holdings in nine quantum computing startups. The donation, which includes $1 billion for IBM, is a component of the Trump administration’s plan to buy shares in industrial and technological businesses.

IBM, a seasoned technology company, announced in a separate press release on Thursday that it is anticipated to receive the largest grant, valued at about $1 billion. Which it will use in conjunction with $1 billion of its own funds to build a quantum chip factory to produce the specialized semiconductors. Required to power quantum computers in the United States.

According to the company’s own press announcement, GlobalFoundries, another chipmaker. Would get $375 million and utilize the money to increase its own manufacturing of quantum computing devices.

According to the Journal story, at least three additional quantum computing firms—D-Wave Quantum, Rigetti Computing, and Infleqtion—are anticipated to receive $100 million apiece.

A smaller grant of $38 million will also go to startup Diraq, the business announced on Thursday.

CHIPS and Science Act, which former President Joe Biden signed into law in 2022 to support American semiconductor production, provides the $2 billion in grant funds. Structure of stock holdings in the majority of these agreements is currently unknown.

The $100 billion would be regarded as an equity investment, D-Wave told the Wall Street Journal, Rigetti and Infleqtion said they were making similar deals. The government’s equity interest, according to GlobalFoundries’ press statement, was a «separate agreement» and would represent «approximately one percent of ownership to date.»