US Government Explores Equity Investments in Quantum Computing Sector

Government Equity Program Expands to Quantum Sector

The US Commerce Department has reportedly initiated discussions with several quantum computing companies about potential equity investments, according to sources familiar with the matter. The program would see the government taking ownership stakes in exchange for federal funding, marking a significant expansion of Washington’s direct investment in strategic technology sectors.

Government Equity Program Expands to Quantum Sector
Quantum Companies in Funding Discussions
Precedent in Other Strategic Industries
Leadership and Potential Conflicts
Strategic Implications for Quantum Development

Quantum Companies in Funding Discussions

According to reports from the Wall Street Journal, multiple quantum computing firms including IonQ, Rigetti Computing, and D-Wave have engaged in talks about receiving minimum funding awards of $10 million. Sources indicate the arrangements would involve the federal government becoming shareholders in these companies as part of the funding agreement.

Analysts suggest that Quantum Computing Inc. and Atom Computing are also considering similar arrangements, though official confirmation from these companies remains pending. The reported discussions represent a growing trend of direct government investment in critical technology sectors deemed essential for national security and economic competitiveness.

Precedent in Other Strategic Industries

This potential move into quantum computing investments reportedly follows similar equity arrangements the US government has pursued in other strategic sectors. According to the analysis, the Department of Defense acquired a 15 percent stake in rare earth magnet company MP Materials earlier this year.

Additionally, sources indicate the government invested $8.9 billion in Intel in August, securing a 9.9 percent stake in the chipmaker. Reports state that $5.7 billion of this investment came from funds that would have been awarded through the CHIPS Act, with an additional $3.2 billion originating from the Secure Enclave program.

Leadership and Potential Conflicts

The discussions with quantum computing companies are reportedly being led by Deputy Commerce Secretary Paul Dabbar, who brings both government and industry experience to the role. According to the Wall Street Journal, Dabbar previously served as a quantum-computing executive and Energy Department official before co-founding Bohr Quantum Technology in 2021.

A Commerce Department official reportedly stated that Bohr Quantum Technology is not a candidate for federal funding under the current program. However, analysts have noted potential complications in the government’s relationship with quantum companies, particularly regarding existing private sector investments.

Social media discussions have highlighted that current Deputy Secretary of Defense Steve Feinberg previously founded and served as CEO of Cerberus Capital Management. Reports indicate the hedge fund purchased 2.4 million shares in IonQ in June 2025, now valued at approximately $134 million.

Further complicating the relationship, IonQ reportedly appointed General John W. “Jay” Raymond, senior managing director of Cerberus Capital Management, to its board of directors in September 2025. That same month, the quantum computing company launched IonQ Federal to integrate its proprietary technologies for government and allied use.

Strategic Implications for Quantum Development

Industry analysts suggest these potential equity investments represent a strategic shift in how the US government supports critical emerging technologies. Rather than traditional grants or contracts, direct equity stakes would give the government ongoing financial interest and potential influence in quantum computing development.

The quantum computing sector represents a particularly sensitive area for government investment, given its potential applications in:

National security and cryptography
Drug discovery and materials science
Financial modeling and optimization
Artificial intelligence and machine learning

Experts suggest that government equity positions could accelerate quantum development while ensuring US leadership in this strategically important field. However, the arrangements also raise questions about the appropriate balance between government influence and private sector innovation.

The Commerce Department has not provided official comment on the specific quantum company discussions, but sources indicate the program represents part of a broader strategy to maintain American technological competitiveness against international rivals.

References

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