Companies
D-Wave and Rigetti Secure $100M Each from US Commerce Department Under CHIPS Act
D-Wave Quantum and Rigetti Computing have both landed significant funding from the US Department of Commerce under the CHIPS and Science Act, with each company receiving up to $100 million to enhance their quantum computing capabilities.
D-Wave's funding is intended to accelerate research and development at its facilities in Boca Raton, Florida, New Haven, Connecticut, and Burnaby, British Columbia. The company aims to develop a 100,000-qubit annealing system and a 10,000-qubit gate-model system, significantly scaling its current technology.
In a unique twist, the funding agreement includes the US government taking a minority, non-controlling equity stake in D-Wave, which introduces potential dilution for existing shareholders. Following the announcement, D-Wave's stock saw a nearly 50% increase, although concerns about the equity stake's impact tempered some enthusiasm.
Similarly, Rigetti Computing's funding will support three R&D projects focused on scaling challenges in superconducting quantum systems. The agreement also involves the government acquiring around 7.74 million shares of Rigetti's stock, valued at approximately $12.92 per share, which could influence the company's stock dynamics.
Both companies are part of a broader $2 billion initiative aimed at bolstering the US's position in quantum technology, reflecting a bipartisan recognition of quantum computing as a national security priority. The CHIPS Act funding underscores the urgency to advance domestic capabilities in the face of global competition, particularly from China.
FAQ
What is the CHIPS Act and why is it important?
The CHIPS Act is a U.S. legislation aimed at boosting domestic semiconductor manufacturing and research, as well as advancing technologies like quantum computing. It reflects a bipartisan recognition of the importance of these technologies for national security and economic competitiveness.
How much funding did D-Wave and Rigetti receive from the US Department of Commerce?
Both D-Wave Quantum and Rigetti Computing received up to $100 million each from the US Department of Commerce under the CHIPS Act to enhance their quantum computing capabilities.
What are D-Wave's plans for the funding received?
D-Wave plans to use the funding to accelerate research and development at its facilities and aims to develop a 100,000-qubit annealing system and a 10,000-qubit gate-model system.
What does the funding agreement entail for D-Wave and Rigetti's stock?
The funding agreements involve the US government acquiring minority, non-controlling equity stakes in D-Wave and Rigetti, which may influence the stock dynamics of both companies.
Why is quantum computing considered a national security priority?
Quantum computing is viewed as a national security priority due to its potential to revolutionize computing power, which can have significant implications for cryptography, data security, and technological leadership in a competitive global landscape.