Tech
First rare earths and chips, now quantum computers: Trump reportedly eyes new U.S. stakes
Published Thu, Oct 23 20255:26 AM EDTUpdated 43 Min Ago
Dylan Butts @in/dylan-b-7a451a107
WATCH LIVE
Key Points
- The Wall Street Journal reported that the Trump administration is in talks about taking equity stakes in quantum computing firms in exchange for federal funding.
- The move comes after Washington took stakes in firms within the rare earths and semiconductor industries, also seen as vital for U.S. tech advancement and competition with China.
- Quantum computing is seen as the next frontier in the U.S.-China technology race, with vast implications for defense, industry and cybersecurity.
Parts of the IBM Quantum System Two are displayed at IBM Thomas J. Watson Research Center in Yorktown Heights, New York on June 6, 2025.
Angela Weiss | Afp | Getty Images
The Trump administration is in talks with several quantum-computing firms about giving the Commerce Department equity stakes in exchange for federal funding, the Wall Street Journal reported on Wednesday.
The Journal, citing anonymous sources familiar with the matter, said the companies include IonQ, Rigetti Computing and D-Wave Quantum. Other firms, such as Quantum Computing Inc. and Atom Computing, are considering similar arrangements, it added.
The news aligns with recent efforts by Washington to take stakes in major companies within industries seen as vital to U.S. national security, especially those receiving public funds.
One of the earliest examples under U.S. President Donald Trump’s second term came when the Defense Department invested $400 million in American rare earths company MP Materials for about a 15% stake in the company.
A month later, the government took a roughly 10% stake in semiconductor firm Intel — the only American company capable of making advanced AI processors on U.S. soil.
The stakes in quantum computing companies would come with minimum funding awards of $10 million each, according to the Journal, citing people familiar with the matter. Other technology companies are also expected to compete for the grants.
An interventionist shift in Washington
The U.S. government’s growing interest in taking stakes in private companies is quite unprecedented in recent decades, especially outside of a financial crisis, signaling an ideological shift toward greater intervention in certain industries.
However, the Trump administration will not take stakes in nonstrategic industries, Treasury Secretary Scott Bessent told CNBC in an exclusive interview on Oct. 15. “We do have to be very careful not to overreach,” he said.
Trump and Commerce Secretary Howard Lutnick have argued that the government should benefit from a company’s success in cases where federal funds have played a role in its growth.
The targeted industries also appear to reflect Washington’s focus on technological and economic competition with China.
The U.S. stake in MP Materials, for example, came after China restricted exports of rare earth elements —essential components in high-tech products — prompting Washington to boost efforts to build its domestic supply chain.
Intel’s funding also aligns with U.S. efforts to strengthen its domestic semiconductor industry to support its broader race for dominance in artificial intelligence.
Quantum computing, which utilizes quantum mechanics to solve problems beyond the capabilities of today’s most supercomputers, is likely viewed as one of the next strategically critical technologies for Washington to focus on, due to its massive economic and security implications.
Experts believe that the advanced tech could revolutionize fields including medicine, finance, and materials science by solving complex problems currently impossible for traditional computers, and pose major cybersecurity threats if it falls into the hands of adversaries.
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