The U.S. Trump administration has identified a new sector to place its investments in: Quantum Computing. The administration is supposedly in talks with multiple Quantum Computing firms to buy equity stakes in exchange for federal funding.
The Wall Street Journal was the first to report on the talks in an exclusive piece. If they are successful, the transaction is expected to take place in the form of federal funding in exchange for equity given to the U.S. Commerce Department.
The update comes as Google’s CEO, Sundar Pichai, posted on X about a new breakthrough in the field using one of the tech firm’s algorithms.
The U.S. government is already significantly involved in sectors crucial to its economy, such as AI, semiconductors, and rare earth materials.
Last month, the Trump administration bought a 10% stake in Intel, which has a focus on semiconductor chip manufacturing alongside graphics chips, motherboard chipsets, and other products.
It is the only company capable of making advanced AI processors, according to CNBC.
The move also furthers U.S. competition with China, as both countries have large investments in these technologies.
Shares of quantum computing firms such as IonQ, D-Wave, and Rigetti showed growth in early trading.