The U.S. government is committing a combined $300 million to D-Wave Quantum, Rigetti Computing and Quantinuum.
- Each company has finalized a $100 million funding agreement with the U.S. Department of Commerce under the CHIPS and Science Act.
- The government will receive a minority, non-controlling equity stake in each company in exchange for the funding.
- The funding aims to address some of quantum computing’s biggest challenges, including scaling, reliability, manufacturing and supply-chain development.
Shares of D-Wave Quantum (QBTS), Rigetti Computing (RGTI) and Quantinuum (QNT) rallied in early morning trade on Tuesday despite weakness in the broader market after the U.S. government finalized putting $100 million each behind the companies in a push to develop quantum computing.
The government’s Department of Commerce will receive a minority, non-controlling equity stake in each company in exchange for the funding.
QBTS stock rose over 4% in pre-market trade, while RGTI stock rallied as much as 7%. QNT shares gained around 2.6%, still outperforming the broader market. The SPDR S&P 500 ETF (SPY) edged 0.26% lower ahead of the market’s opening, while the SPDR Dow Jones Industrial Average ETF (DIA) slipped 0.75% and the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) traded flat.
RGTI and QBTS stocks were among the top trending tickers on Stocktwits at the time of writing. However, retail sentiment around them remained in ‘bearish’ territory over the past day.
Government Targets Quantum’s Biggest Challenge
Quantum computers are expected eventually tackle problems that are difficult or impossible for conventional computers, with potential applications in areas including drug discovery, materials science, cryptography, optimization and artificial intelligence.
However, the technology remains difficult and expensive to scale. The companies are using different approaches to solve that problem, and all three government agreements focus heavily on moving quantum computing toward larger and more practical systems.
Where Does The $100M Go?
Rigetti is using its $100 million award to address three hardware challenges. This includes shrinking the electronics used to read quantum chips, dramatically expanding the capacity of the extremely cold environments quantum computers require, and developing chips that allow more quantum bits, or qubits, to communicate with one another.
D-Wave will use up to $100 million to develop both its quantum annealing and gate-model systems. Its targets include a 100,000-qubit annealing system and a 10,000-qubit gate-model system designed to deliver 100 logical qubits.
Quantinuum, meanwhile, will use its $100 million award to scale its trapped-ion quantum technology, another approach to building quantum computers. The company plans to work with GlobalFoundries (GFS) to manufacture next-generation ion traps and electronics using 300mm wafers, while Monarch Quantum will help develop lasers and optical components.
GFS stock gained over 1% in pre-market trade, with retail sentiment on Stocktwits trending in ‘bearish’ territory over the past day.
Read also: Samsung, TSMC Commit To ASML’s Next-Gen Chip Machines, But Intel Got There First
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