U.S. Commerce Department to Award $2 Billion to Nine Quantum Computing Firms, Including $1 Billion for IBM

The U.S. Commerce Department is set to award $2 billion in grants to nine quantum computing companies, with IBM positioned as the largest recipient at $1 billion, sending shares across the sector sharply higher on Thursday.

The government will also take equity stakes in the recipient firms as part of the arrangement, according to reports. Funding for the package is expected to come from the 2022 Chips and Science Act. The deals have not yet been formally completed.

IBM shares were trading about 7% higher following the news. The company confirmed it would work with the federal government to develop what it described as America's first purpose-built quantum foundry, supported by the proposed $1 billion award.

IBM said the initiative will "accelerate American quantum innovation and enable advanced quantum wafer production for a broad range of companies."

The incentive from the Commerce Department will support the research and development efforts of a new IBM subsidiary called Anderon, to which IBM said it would contribute a matching $1 billion investment. "Headquartered in Albany, New York as a standalone company, Anderon will operate as a state-of-the-art 300-millimeter quantum wafer foundry," IBM said in a news release.

IBM projected that the quantum industry could generate up to $850 billion in economic value by 2040 while also bolstering national security.

Among other recipients, chipmaker GlobalFoundries is slated to receive $375 million. D-Wave Quantum, Rigetti Computing, and Infleqtion are each expected to be awarded $100 million. Startup Diraq is reportedly set to receive $38 million.

The market reaction was swift. Shares of D-Wave and Rigetti were last seen trading 16% higher. Infleqtion climbed approximately 30%, as did Arqit. IonQ rose 11%, and Quantum Computing gained 17%.

The Commerce Department had not yet responded to requests for comment as of Thursday.

The awards reflect a broader push by the federal government to secure domestic leadership in quantum technology, which developers say will enable computers to solve complex problems beyond the reach of today's classical systems.

The announcement comes as competition between the United States and other nations over advanced computing infrastructure continues to intensify, reinforcing Washington's strategy of deploying direct financial support — and equity positions — to accelerate development in sectors it deems strategically critical.

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