Why Are Infleqtion, D-Wave Quantum, Rigetti Computing Shares Surging In Thursday Pre-Market?
Namrata Sen 5 months ago
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Trump Administration to invest $2 billion in quantum firms, boosting shares of Infleqtion, D-Wave, Rigetti, IBM and others.
(Editor’s note: This story has been updated to include details from the LOIs signed by the companies)
Shares of Infleqtion Inc.(NYSE:INFQ) surged 25.4%, while D-Wave Quantum Inc. (NYSE:QBTS) and Rigetti Computing Inc. (NASDAQ:RGTI) surged 17.65% and 14.58%, respectively, in Thursday's pre-market trading session, after each of these companies signed a Letter of Intent (LOI) with the Department of Commerce for a $100 million chip funding deal.
The Wall Street Journal reported earlier in the day that the Commerce Department would also acquire equity stakes in each of these firms as part of the deal, and the total commitment of the Trump administration would be $2 billion across nine companies.
The U.S. government is fast-tracking its plans to stimulate the burgeoning quantum computing sector.
IBM (NYSE:IBM), a quantum computing frontrunner, received half of the funding amounting to $1 billion. Chip manufacturer GlobalFoundries (NASDAQ:GFS) received $375 million, while startup Diraq received a $38 million investment.
US Chips Act Funds Quantum Stakes
The financial injection is part of the Trump administration’s strategy to harness the transformative potential of quantum computing for scientific research, prioritizing it for economic and national security. The funding is sourced from the 2022 Chips and Science Act, which also allocates funds for early-stage technology projects.
The government will take minority equity stakes in each quantum-computing company, similar to past deals with companies like Vulcan Elements and MP Materials (NYSE:MP), though the Commerce Department has not revealed the size or structure of those stakes, as per the report.
The move follows similar reports in October about the Trump administration talking with several U.S. quantum computing firms to exchange federal funding for government equity stakes. Initial grants were expected to start at around $10 million per company, with firms such as Quantum Computing Inc. and Atom Computing reportedly evaluating similar arrangements.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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