The Trump administration is reportedly preparing to take a page out of the Intel playbook—this time in the world of quantum computing. According to reports from MarketWatch and The Wall Street Journal, the U.S. Department of Commerce is in talks with five leading quantum firms, including IonQ (IONQ), Rigetti Computing (RGTI), D-Wave Quantum, Quantum Computing Inc. (QUBT), and Atom Computing, about an "equity-for-cash" partnership.
Copying the Intel Model
The so-called Intel model refers to the government’s $9 billion funding deal earlier this year, which was converted into equity, giving Washington nearly 10% ownership of Intel. That move made the U.S. government Intel’s largest shareholder.
Now, the same approach may be applied to quantum computing. Sources familiar with the matter say each company could receive at least $10 million in federal funding through the reorganized Chip Research and Development Office, overseen by Commerce Secretary Lutnick. In exchange, the government would take equity stakes, and possibly negotiate warrants, patent licenses, or revenue-sharing rights.
Why Quantum, Why Now
Quantum computing is widely seen as the next frontier in strategic technology. Its potential applications range from drug discovery to materials science to logistics optimization. Google recently claimed its quantum machine is 13,000 times faster than a classical supercomputer, underscoring the urgency of staying ahead in this global race.
Despite a recent pullback in stock prices, companies like Rigetti and D-Wave have seen their shares double this year, reflecting investor confidence in the sector’s long-term potential.
Industry Reaction
Executives have welcomed the prospect of government backing. Quantum Computing CEO Yuping Huang called the talks "exciting," while Rigetti said it is actively exploring funding opportunities. D-Wave’s Allison Schwartz, who heads government relations, emphasized that such partnerships could both meet federal technology needs and deliver returns for taxpayers.
Strategic Control and Capital Leverage
Analysts note that the administration’s equity-for-capital model serves two purposes:
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It tightens government influence over strategic technologies.
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It leverages public funds to attract additional private investment.
This approach has already been tested in other sectors. The Department of Energy struck a similar deal with Lithium Americas, combining loans and equity to support a Nevada rare earth project.
Risks and Rewards
Critics caution that government equity stakes blur the line between public policy and corporate strategy. Still, with private credit markets jittery and global rivals like China accelerating their own quantum programs, Washington appears willing to take a more hands-on role.
For investors, the message is clear: quantum computing is no longer just a speculative bet—it’s becoming a national priority.
The Bottom Line
Whether you call it industrial policy or strategic investing, the U.S. government’s potential move into quantum equity stakes signals a new phase in tech competition. If the Intel model is any guide, Washington isn’t just writing checks—it’s buying a seat at the table.