US weighs government equity stakes in quantum firms for funding

U.S. government discussions with several quantum computing firms about taking ownership stakes in exchange for federal funding have set off sharp swings in the sector’s stocks this week, according to people familiar with the talks and statements from the Commerce Department and company representatives. The proposals, which would use CHIPS-related funding and carry minimum awards of at least $10 million per company, name a group of public and private firms that includes DWave, IonQ, Rigetti Computing, Quantum Computing Inc., and Atom Computing.

People familiar with the discussions said oversight of the potential program is being handled out of the Commerce Department and has been led by Deputy Commerce Secretary Paul Dabbar. A Commerce Department official said the department is not currently negotiating with any of the companies named. Company responses have been mixed: a Rigetti spokesperson said the company has engaged with the government on potential funding, while other firms declined to comment or did not respond.

The news and related reports sent quantum stocks surging in premarket trading, partly reversing a marketwide selloff the previous day, and then contributing to...