A New Form of Industrial Policy

The Trump administration is reportedly in talks with several quantum computing companies to provide them with federal funding of at least $10 million each in exchange for minority ownership stakes by the Department of Commerce. According to The Wall Street Journal, IonQ, Rigetti Computing, and D-Wave Quantum are among the firms already in discussions, while Quantum Computing Inc. and Atom Computing are considering joining the program.

Markets reacted immediately: shares of IonQ and D-Wave surged about 9% in early trading, Rigetti rose 7%, and Quantum Computing Inc. gained 11%. The rally reflects growing investor confidence that Washington’s financial backing could anchor these firms at the center of America’s national technology strategy.

A Government That Owns, Not Just Regulates

This approach represents a decisive policy shift — a U.S. government willing not only to fund, but to own part of the companies it supports. Earlier this year, the Department of Defense took a 15% stake in MP Materials through a $400 million investment to secure domestic access to rare earth elements, and shortly thereafter, the government acquired roughly 10% of Intel, the only U.S. firm capable of manufacturing advanced AI processors on American soil.

Treasury Secretary Scott Bessent told CNBC that Washington will “avoid overreach,” but emphasized that the government should share in the upside of firms that owe part of their growth to taxpayer support. This reflects a broader transformation — from a hands-off market policy to an active industrial partnership model aimed at protecting strategic technologies.

Competition with China Drives the Strategy

At the heart of the initiative lies a growing technological rivalry with China. Beijing’s recent restrictions on rare-earth exports and its rapid progress in semiconductor and AI capabilities have pushed Washington to reassert control over its own high-tech base. Quantum computing now joins semiconductors and defense-critical minerals as a national priority.

Quantum technology, which leverages the principles of quantum mechanics to perform calculations far beyond the reach of conventional supercomputers, could revolutionize industries from pharmaceuticals to finance. At the same time, it poses a cybersecurity threat if adversaries gain quantum-level decryption capabilities — a risk U.S. policymakers appear determined to mitigate.

Toward a “Strategic Capitalism”

President Trump and Commerce Secretary Howard Lutnick have both argued that when public money helps a company grow, the state should share in the profits. This idea underpins what analysts are calling strategic capitalism — an American model that blends free-market dynamics with targeted state intervention in sectors vital to national security.

For Washington, investing directly in quantum computing firms is not just a financial decision — it’s a geopolitical statement. As the race for quantum dominance accelerates, the U.S. intends to ensure that the next technological revolution is built in America, not imported from Beijing.