The U.S. Commerce Department explicitly stated on Thursday that the Trump administration is not in talks to acquire equity stakes in domestic quantum computing companies, directly rebutting a prior Wall Street Journal report that had sent related stocks soaring.
A Commerce Department spokesperson told media outlets that “the Commerce Department is not currently negotiating equity stakes with quantum computing companies.” This formal denial aimed to clarify a WSJ report, which cited unnamed sources claiming the government was exploring investments in select quantum startups to strengthen America’s competitive edge against China in advanced technologies.
Quantum computing is regarded as one of the most transformative emerging technologies, with profound implications for defense and artificial intelligence. Analysts anticipate viable commercial quantum machines within five years, with significant potential in areas ranging from code-breaking to drug discovery.
Prior to the Commerce Department’s denial, the WSJ report had triggered a strong market reaction. It suggested the administration was considering providing federal funding to a handful of companies in exchange for equity stakes granted to the Commerce Department.
Spurred by the report, shares of quantum computing firms surged on Thursday: IonQ (IONQ)、Rigetti Computing (RGTI)、D-Wave Quantum (QBTS) and Quantum Computing (QUBT) saw gains between 5% and 14%. The Defiance Quantum ETF (QTUM), which tracks over 80 related stocks, advanced 2%.However, following the official U.S. government clarification, these stocks subsequently gave up their earlier gains.
Despite the latest denial regarding quantum firms, the Trump administration has precedents for direct investment in public companies. Previous media reports indicated the government took a 10% stake in chip giant Intel and a 15% stake in MP Materials, a rare-earth company critical to national security.
This approach, termed “state capitalism” by some market observers, has sparked broad discussion in Washington policy circles. Commerce Secretary Howard Lutnick has defended the strategy, arguing that the government should benefit when taxpayer money fuels innovation. Following the Intel deal, he described it as “fair to the American people.”
However, some economists and policymakers worry such transactions amount to the government picking market winners, potentially running counter to national interests and capitalist principles.
Currently, the quantum computing field remains largely experimental. According to McKinsey data, global quantum computing revenue totaled under $750 million in 2024, with most U.S. federal investment directed toward research grants and public-private partnerships rather than equity acquisitions. The Commerce Department’s latest denial suggests that despite increased scrutiny of China’s quantum sector and enhanced support for domestic research, Washington remains cautious regarding direct ownership in frontier technologies.
