IBM (NYSE:IBM) shares climbed 6.6% on Thursday after the U.S. Commerce Department announced that the company would receive US$1 billion in government funding to accelerate the development of quantum computing technology.
The grant forms part of a broader US$2 billion funding package allocated to nine quantum computing companies, according to a report by The Wall Street Journal. The agreements reportedly include equity stakes for the U.S. government and mark an acceleration of the Trump administration’s strategy to support the emerging quantum computing sector.
IBM is considered one of the leading companies in the global race to develop computers capable of using quantum mechanics to solve complex problems significantly faster than traditional supercomputers.
Combined with advances in artificial intelligence, quantum computing is widely viewed as having the potential to transform scientific research and technological innovation, making it both an economic and national security priority for the U.S. administration.
The companies selected for funding are focused on developing specialised semiconductor technologies for quantum computing, an area the government sees as strategically important for strengthening domestic technology supply chains.
GlobalFoundries (NASDAQ:GFS) is set to receive US$375 million in funding under the programme.
The remaining companies involved are expected to receive approximately US$100 million each, with the exception of startup Diraq, which is expected to receive US$38 million.
Investment interest in the quantum computing industry has increased sharply in recent months as businesses and investors increasingly view the technology as commercially viable for future applications.