Donald Trump is eyeing taking equity stakes in quantum computing firms in exchange for federal funding, The Wall Street Journal reported.
At least five companies are weighing whether allowing the government to become a shareholder would be worth it to snag funding that the Trump administration has “earmarked for promising technology companies,” sources familiar with the potential deals told the WSJ.
IonQ, Rigetti Computing, and D-Wave Quantum are currently in talks with the government over potential funding agreements, with minimum awards of $10 million each, some sources said. Quantum Computing Inc. and Atom Computing are reportedly “considering similar arrangements,” as are other companies in the sector, which is viewed as critical for scientific advancements and next-generation technologies.
No deals have been completed yet, sources said, and terms could change as quantum-computing firms weigh the potential risks of government influence over their operations.
Quantum-computing exec called deals “exciting”
In August, Intel agreed to give the US a 10 percent stake in the company, then admitted to shareholders that “it is difficult to foresee all the potential consequences” of the unusual arrangement. If the deal goes through, the US would become Intel’s largest shareholder, the WSJ noted, potentially influencing major decisions that could prompt layoffs or restrict business in certain foreign markets.
“Among other things, there could be adverse reactions, immediately or over time, from investors, employees, customers, suppliers, other business or commercial partners, foreign governments, or competitors,” Intel wrote in a securities filing. “There may also be litigation related to the transaction or otherwise and increased public or political scrutiny with respect to the Company.”
But quantum computing companies that are closest to entering deals appear optimistic about possible government involvement.
Quantum Computing Inc. chief executive Yuping Huang told the WSJ that “the government’s potential equity stakes in companies in the industry are exciting.” The funding could be one of “the first significant signs of support for the sector from Washington,” the WSJ noted, potentially paving the way for breakthroughs such as Google’s recent demonstration of a quantum algorithm running 13,000 times faster than a supercomputer.
