IBM Secures $1bn as US Backs Nine Quantum Companies with $2bn
May 21, 2026 – 4:41 pm
The U.S. Department of Commerce has announced nine letters of intent to provide $2.013bn in CHIPS Act funding to quantum computing companies, securing federal equity stakes in each recipient. This significant move, first reported by the Wall Street Journal, marks the largest single investment by the US government in the quantum industry.
Key Recipients:
- IBM: Leading the pack with approximately $1bn, IBM also committed to investing an additional $1bn in a domestic quantum chip-manufacturing facility, partnering with GlobalFoundries for about $375m.
- Publicly Traded Companies: D-Wave Quantum, Rigetti Computing, and Infleqtion are expected to receive roughly $100m each. Silicon-spin startup Diraq is slated for up to $38m.
Unusual Structure:
The funding mechanism is unique as the government will take equity stakes alongside each grant, mirroring the approach taken by the Trump administration in the Intel CHIPS award last year. This news sent quantum stocks surging between 7% and 21% in premarket trading.
Administration’s Perspective:
The administration frames this initiative as industrial policy aimed at China, with Commerce Secretary Howard Lutnick stating that the letters of intent are intended to "lead the world into a new era of American innovation."
Focus on Domestic Capacity:
The package covers two domestic foundries and seven quantum computing companies, emphasizing the need for chip-making capacity to support the emerging quantum industry.
Long-Term Validation vs. Survival Check:
For IBM, this grant validates a decade-long bet on quantum technology. For D-Wave, Rigetti, and Infleqtion, it’s seen as a crucial survival check, having argued for their architectures’ significance over the past two years.
Unanswered Questions:
The letters of intent do not yet provide clarity on conversion timelines or specific equity terms. The next administration will inherit the task of evaluating the strategic and financial outcomes of this state-backed cap table strategy.