IBM shares soared after the United States Government announced it would invest in nine quantum-computing companies, including a new entity majority-owned by the technology giant.
The U.S. Department of Commerce said the Government would spend about US$2 billion (A$2.76 billion), of which IBM would receive $1 billion to set up a company to build America's first dedicated quantum chip manufacturing facility.
The Department did not disclose how much the Government would own of the new company, Anderon, but IBM will reportedly have control.
“With today’s CHIPS Research and Development investments in quantum computing, the Trump administration is leading the world into a new era of American innovation,” Commerce Secretary Howard Lutnick was quoted saying in a Financial Times article.
“These strategic quantum technology investments will build on our domestic industry, creating thousands of high-paying American jobs while advancing American quantum capabilities.”
IBM Chief Executive Officer Arvind Krishna said the new firm would offer its chipmaking technology to outside customers and was talking to potential clients.
"They're going to get the exact same capability that we have for ourselves," Krishna was quoted as saying in a Reuters news story.
IBM (NYSE: IBM) stock closed $27.97 or 12.43% higher at $252.97 on Thursday (Friday AEST), capitalising the 125-year-old technology giant company at US$237.76 billion.
Contract chipmaker GlobalFoundries (NASDAQ: GFS) will receive $375 million, D-Wave (NYSE: QBTS), Rigetti Computing (NASDAQ: RGTI), and Infleqtion (NYSE: INFQ) will get about $100 million each, and Diraq will receive up to $38 million.
Atom Computing, PsiQuantum and Quantinuum are expected to receive funding.
This marks a change in strategy for the U.S. Government, which will take minority equity stakes to capture long-term value from American businesses rather than provide grants and subsidies.
The new approach, which was being seen in the context of the United States’ intensifying technological rivalry with China, could also reshape the Government’s relationship with the capital markets.
Quantum computing uses the laws of quantum physics to process information differently and powerfully than modern computers, potentially speeding up tasks.
