Shares of quantum computing companies experienced a notable increase in premarket trading following reports that the U.S. government will distribute $2 billion in grants to nine firms in the industry. The Wall Street Journal indicated that the government will also take equity stakes in these companies, with IBM being the largest recipient, set to receive $1 billion.
This funding is part of the 2022 Chips and Science Act and aims to bolster the development of quantum technology, which is expected to solve complex problems beyond the capabilities of current computers.
Following the announcement, IBM's shares rose by 6%, while other companies like D-Wave Quantum, Rigetti Computing, and Infleqtion saw their stocks increase by 16%, 13.8%, and over 23%, respectively. IBM confirmed its plans to establish a purpose-built quantum foundry named Anderon in Albany, New York, which will focus on advanced quantum wafer production.
This initiative is projected to enhance U.S. leadership in the quantum industry, which could generate up to $850 billion in economic value by 2040 and contribute to national security