Thread regarding IBM layoffs

U.S. to Award Quantum-Computing Firms $2 Billion and Take Equity Stakes

IBM Chief Executive Arvind Krishna in an interview
compared quantum to where AI chips were a
decade ago and said the new business could
generate billions of dollars a year in sales with high
profit margins by the mid-2030s.

Yep, quantum is almost here, like they've been telling us for years.

https://www.wsj.com/tech/quantum-computing-grants-ibm-rigetti-globalfoundries-7382e6be

Trump administration hopes to spur ‘a new era of American innovation,’ Commerce Secretary Lutnick says

By: Amrith Ramkumar and Heather Somerville |
Updated May 21, 2026 10:17 pm ET

WASHINGTON—The Trump administration is awarding $2 billion in grants to nine quantum-computing companies in deals that include U.S. government equity stakes, the Commerce Department said.

The move accelerates the administration’s plans to boost the nascent industry, which has attracted a wave of investment from investors and businesses in recent months.

The department has agreed to give $1 billion of the package to International Business Machines IBM, a leader in the race to build computers that use quantum mechanics to solve problems much faster than traditional supercomputers. Coupled with advances in artificial intelligence, quantum computing has the potential to turbocharge scientific research, making it an economic and national-security priority for President Trump.

IBM and other companies are working to develop specialized chips for quantum computing, a focus for the government in its bid to spur domestic supply chains. IBM said it is investing $1 billion of its own cash alongside the award to set up what it said is the nation’s first specialized quantum chip manufacturing facility. The company is establishing a new business focused on the effort that will receive the government investment.

Shares of the company added 12%.

The chip maker GlobalFoundries GFS 14.92%increase; green up pointing triangle is receiving $375 million in funding and giving the government a roughly 1% stake in the company. It is also setting up a new business focused on quantum. The rest of the companies are expected to receive $100 million, except for the startup Diraq, which is slated to get $38 million.

Several companies pursuing various approaches to quantum are slated to be awarded funds, including the publicly traded firms D-Wave Quantum, Rigetti Computing and Infleqtion.

The deals still need to be completed.

GlobalFoundries surged 15% on Thursday, while shares of the smaller publicly traded companies receiving funding—D-Wave Quantum, Rigetti Computing and Infleqtion—added roughly 30% or more.

The funding for the quantum deals comes from the 2022 Chips and Science Act, which includes money for earlier-stage technology projects. Commerce Secretary Howard Lutnick has overhauled the office, asking semiconductor companies to increase their domestic investments and taking a nearly 10% stake in Intel, which has seen shares surge since the unusual deal.

The government will receive a minority equity stake in each quantum company, adding to similar deals including the rare-earths magnet maker Vulcan Elements and the mining company MP Materials.

D-Wave said that all of its $100 million award would be an equity investment. It recently had a market value of more than $7 billion. Rigetti and Infleqtion said their deals would have a similar structure.

The department and many of the other quantum companies didn’t provide details about the exact size and structure of other equity stakes.

“The Trump administration is leading the world into a new era of American innovation,” Lutnick said in a statement.

The new funding comes as the administration works on an executive order focused on the industry, according to people familiar with the matter.

The Wall Street Journal previously reported the department was talking to quantum companies about funding and equity stakes.

Some tech analysts have said the quantum sector and others are too risky for the government to make equity investments, but Lutnick has argued that the deals are structured so taxpayers will ultimately benefit. A senior Commerce Department official said the agency did so many different deals to spread out its bets, acknowledging that it could take years for them to pan out.

“Everybody is excited about quantum because it is the next big thing. A lot of the expectations and hopes have yet to be realized,” said Dana Goward, president of the Resilient Navigation and Timing Foundation, a charity advocating for policies and systems to protect GPS satellites, signals, and users. One application of quantum has the potential to replace GPS, according to tech analysts.

IBM Chief Executive Arvind Krishna in an interview compared quantum to where AI chips were a decade ago and said the new business could generate billions of dollars a year in sales with high profit margins by the mid-2030s. The slate of deals “is a great statement of confidence that this industry is right around the corner within a couple of years,” Krishna said.

Krishna cited recent advanced simulations of proteins on IBM quantum computers that could aid dr-g discovery as an example of the sector’s progress.

Quantum executives said the amount of time it takes to make advancements in the field is falling thanks to the investments and research breakthroughs such as more powerful chips.

The other quantum startups expected to receive funding are Atom Computing, PsiQuantum and Quantinuum.

Last year, PsiQuantum raised $1 billion from investors including 1789 Capital, a venture firm in which Donald Trump Jr. is a partner. 1789 also backs Vulcan Elements, the rare-earth magnet startup the government has also invested in.


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| 21 views | | 11 replies (last 16 days ago) | Reply
Post ID: @OP+1ks72x2jn

11 replies (most recent on top)

@t0 sure, some folks at the executive level (you know whom I mean) will start putting their hands in the cookie jar to get at the money right away on some pretext or the other. After all, $1 billion is not exactly chump change. Remember what happened to all the money that was allegedly flowing during the Watson Healthcare Heydays ? It all disappeared in the pockets of the senior execs and managers with lots of excuses to go around - travel to see clients (non-existent), meetings which were catered for and by by the IBM bigwigs, travels to see friends and family, gifts for friends and family. There was no auditor and there was NO audit trail. In short, it was a free for all and the senior executives loved the paydays and paychecks. Same thing is gonna happen here too - who gives a damn about the BCGs or the Feds investigating fraud? Certainly not Arvind and his gang of thieves. They will make out like the corporate bandits and thieves that they are. Trump will be filling his pockets too so he couldn't care less if money is a billion or a gazillion dollars short.

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Post ID: @tc+1ks72x2jn

Does anyone actually think this is a good thing?

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Post ID: @t0+1ks72x2jn

Remember Ginni's "Moon Shot" to sure cancer with Watson Health?? 'Member that!!!???

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Post ID: @ec+1ks72x2jn

I trust Arvind completely.

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Post ID: @dw+1ks72x2jn

We are so far away from the point where building a "foundry" to stamp out "quantum chips" makes any sense from a physics, engineering, or economics perspective that it's laughable. Decades away, at least. Maybe we should also start building replicator factories and transporter factories ala Star Trek, too.

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Post ID: @bk+1ks72x2jn

Why does there feel and sound like IBM overhype propaganda again?

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Post ID: @b4+1ks72x2jn

@ay you are spot on with your observations and analysis.

When you're at the leading edge of technology (like IBM claims to be), you are also at the bleeding edge. That's coming down the road for sure, and there's no getting away from that.

As the Chinese say "May you live in interesting times"

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Post ID: @b2+1ks72x2jn

IBM said a few years ago "...we will have thousands of Quantum systems available by 2025...". Trump had called IBM "...were'nt you a very troubled company for a long time...?". Perhaps why Dario Gill left IBM to influence Fed Gov on things like this. IBM's track record on mega new things for the last 4 decades has been horrific. IBM reminds me of Disney's cartoon character "Pete" from the 1920s who has evolved to today and was a bumbling villain. IBM mised cloud. IBM missed AI. While IBM has spent tens of millions on designing and building and hyping Quantum, the future is very very unknown. Even if it turns out be be a hit; do you really think IBM will "lead"? Smaller, nimbler, hungrier, smarter firms will absolutely once again quickly lap IBM as they always do. Think (no not that THINK) IBM as Wile E. Coyote and Road Runner (all the other better firms that will win the day).

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Post ID: @ay+1ks72x2jn

Welcome to a new Watson debacle, same as the old Watson Healthcare debacle. Lots of false and fake promises about a non-existent and non-functioning technology. Pie in the sky.

$1 billion down the drain, but then it's only US taxpayer money, isn't it ? So who is checking what Arvind and his cronies are doing with the cash ?

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Post ID: @an+1ks72x2jn

GenAI isn't working out so they're trying to find the next big thing.

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Post ID: @aj+1ks72x2jn

[Reuters' coverage of the same].

US to invest $2 billion in IBM, other quantum computing firms --

https://www.reuters.com/business/us-award-2-billion-quantum-computing-firms-take-equity-stakes-wsj-reports-2026-05-21/

By: Harshita Mary Varghese and Aditya Soni |
May 21, 2026 5:28 AM CDT Updated 10 hours ago

  • US government taking equity stakes in some quantum computing firms
  • IBM to receive $1 bln, GlobalFoundries to receive $375 mln
  • IBM launching quantum chip company called Anderon

May 21 (Reuters) - The Trump administration will ​take $2 billion in equity stakes across nine quantum-computing companies, including a new IBM (IBM.N), venture, in a major push to secure U.S. ‌leadership in the emerging technology and counter China.

The move shows the growing prominence of quantum computing, where recent technological breakthroughs have deepened investor interest in its potential to speed up tasks ranging from dr-g discovery to financial modelling and cryptography.

The U.S. Department of Commerce said on Thursday that IBM would receive $1 billion to set up a company to manufacture quantum ​chips, while contract chipmaker GlobalFoundries (GFS.O), will get $375 million to build a U.S. factory producing components for different types of quantum machines.

IBM said ​the new company, Anderon, will be based in New Albany, New York, and become America's first dedicated quantum chip manufacturing ⁠facility. It did not disclose the government's stake in the new company.

IBM CEO Arvind Krishna told Reuters the new firm would offer its chipmaking technology ​to outside customers and was already in talks with potential clients. "They're going to get the exact same capability that we have for ourselves," Krishna said.

Other ​firms including D-Wave (QBTS.N), Rigetti Computing (RGTI.O), and Infleqtion (INFQ.N), will get about $100 million each, while Diraq will receive up to $38 million to tackle key technical hurdles holding back more powerful systems, the Commerce Department added.

Two of the recipients have ties to the administration. Emil Michael, the Pentagon's top technology official, took D-Wave public in 2022 through a blank-check firm he was ​heading at the time. PsiQuantum last year raised $1 billion from investors including Nvidia's venture capital arm and Donald Trump Jr.-backed 1789 Capital.

Shares of companies involved ​in the deal rose between 6% and 31% following the announcement.

The funding, drawn from incentives under the CHIPS and Science Act signed by former President Joe Biden, is the ‌latest example ⁠of Washington taking equity positions in strategic industries to shore up supply chains and compete with China.

Last year, the government converted some CHIPS Act grants as well as unpaid federal incentives into a 10% stake in Intel that made it the chipmaker's largest shareholder. It has also taken a big stake in MP Materials (MP.N), a rare-earth mining company.

"These strategic quantum technology investments will build on our domestic industry, creating thousands of high-paying American jobs while advancing American quantum ​capabilities,” Secretary of Commerce Howard Lutnick ​said.

https://www.reuters.com/graphics/USA-QUANTUM%20COMPUTING/lbvgyedekvq/chart.png

UNCERTAIN TIMELINE FOR QUANTUM COMPUTERS

Quantum computing ⁠has drawn growing investor interest after recent advances, but major technical challenges remain, including high error rates that limit practical performance.

IBM will make a contribution of $1 billion to Anderon. It will also give intellectual property, assets and workforce ​to Anderon and bring in additional investors as the new company grows.

GlobalFoundries, in which the U.S. government is ​taking an equity stake ⁠of about 1%, said it has launched a new business called Quantum Technology Solutions focused on scaling manufacturing for quantum-computing hardware.

Gregg Bartlett, chief technology officer of GlobalFoundries, told Reuters the company will work with multiple firms on control chips that can withstand ultra-low temperatures required for quantum computers, as well as advanced packaging technologies.

Matthew ⁠Kinsella, CEO ​of Infleqtion, told Reuters that the investments underscored the technology's growing potential.

"The government has proven ​to not fund thus far technologies they would deem as speculative, and I believe that this investment really does further validate that quantum computing is coming much faster than anybody thinks," Kinsella ​said.

https://www.reuters.com/graphics/USA-QUANTUM%20COMPUTING/gdvzalexbpw/chart.png

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Post ID: @a3+1ks72x2jn

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