The US government will take equity stakes worth a total of $2 billion in a slew of quantum computing companies, including a startup backed by a firm with links to the Trump family and one taken public by a Pentagon official.

The announcement by the commerce department that it had signed letters of intent with nine companies—including GlobalFoundries and IBM—sent shares in quantum specialists soaring on Thursday.

Both IBM, which is set to get $1 billion, and GlobalFoundries, which will receive $375 million, were up more than 6 percent in pre-market trading. D-Wave Quantum, an awardee that was taken public in 2022 by Emil Michael—now a top Pentagon official—was up more than 20 percent.

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Last week, the US government announced $2 billion in investments in quantum computing companies, allocating $100 million each to a range of startups in exchange for equity in the companies. Those could be make-or-break investments for many companies that are likely years away from a product that could see widespread use. But a member of the US Congress is now arguing that those deals are illegal, as Congress did not allocate the money for this purpose—instead, it was meant to support public research in semiconductors.

But the biggest chunk of money would go to a company that likely wouldn't exist if it weren't for the government's backing. Anderon will be set up with a billion dollars each from IBM and the government and will inherit personnel and IP from IBM. It will serve as a foundry for fabricating quantum processing units and will contract its services out to IBM and any other company that wants access to cutting-edge hardware.

Is any of this legal?

Zoe Lofgren (D–Calif.), the ranking member of the House Science, Space, and Technology Committee, made it clear that she is not happy with how the government is using its money to support this technology.

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The US government will take equity stakes worth a total of $2 billion in a slew of quantum computing companies, including a startup backed by a firm with links to the Trump family and one taken public by a Pentagon official.

The announcement by the commerce department that it had signed letters of intent with nine companies—including GlobalFoundries and IBM—sent shares in quantum specialists soaring on Thursday.

Both IBM, which is set to get $1 billion, and GlobalFoundries, which will receive $375 million, were up more than 6 percent in pre-market trading. D-Wave Quantum, an awardee that was taken public in 2022 by Emil Michael—now a top Pentagon official—was up more than 20 percent.

Read full article

Comments

The US government will take equity stakes worth a total of $2 billion in a slew of quantum computing companies, including a startup backed by a firm with links to the Trump family and one taken public by a Pentagon official.

The announcement by the commerce department that it had signed letters of intent with nine companies—including GlobalFoundries and IBM—sent shares in quantum specialists soaring on Thursday.

Both IBM, which is set to get $1 billion, and GlobalFoundries, which will receive $375 million, were up more than 6 percent in pre-market trading. D-Wave Quantum, an awardee that was taken public in 2022 by Emil Michael—now a top Pentagon official—was up more than 20 percent.

Read full article

Comments