The administration of U.S. President Donald Trump is denying plans to take equity stakes in quantum computing firms such as D-Wave Quantum (QBTS), Rigetti Computing (RGTI), and IonQ (IONQ).
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Earlier media reports said that the Trump administration was interested in taking equity stakes in quantum computing firms, similar to the position it took in microchip designer Intel (INTC) earlier this year. Quantum stocks had risen sharply on the previous media reports.
Specifically, there were reports that D-Wave, Rigetti, and IonQ were in discussions about granting shares to the U.S. Commerce Department in exchange for minimum funding awards of $10 million each. However, the Commerce Department is denying having any interest in quantum computing.
No Negotiations
The Commerce Department said in a statement that it is “not currently negotiating equity stakes with quantum computing companies.” However, when justifying the 10% stake that the U.S. government took in Intel, Commerce Secretary Howard Lutnick said that American taxpayers should benefit from a company’s success, especially where federal funds are involved.
D-Wave’s stock saw the biggest gain on Oct. 23 when reports of a potential government stake surfaced, rising 14%. Rigetti and IonQ stocks rose 8% and 7%, respectively. While those gains have been pared after the Commerce Department denied interest in the quantum computing companies, the stocks are still up on the day, with D-Wave’s shares trading 12% higher at mid-afternoon.
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