D-Wave Quantum (QBTS +6.12%) signed a definitive agreement with the U.S. Department of Commerce today, giving it access to "up to $100 million" in funding under the U.S. CHIPS and Science Act.
D-Wave stock took off like a rocket on the news, soaring 9% through 10:50 a.m. ET Tuesday.
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What it means for D-Wave Quantum
Company CEO Dr. Alan Baratz said the $100 million will be used to help "scale, commercialize and manufacture ... domestic quantum capabilities," including by "strengthening the underlying supply chain" for building quantum computers.
In exchange for giving D-Wave this boost, the company says the U.S. Department of Commerce "will receive a minority, non-controlling equity stake in D-Wave." The exact amount of the stake has not been revealed. Still, given the company's $6.7 billion market capitalization, a $100 million grant might be expected to result in the government taking perhaps a 1.5% equity stake in the company.
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What it means for other quantum stocks
It's important for investors to note, however, that Commerce hasn't settled upon D-Wave as a sort of "national champion" in quantum computing -- or at least not its only champion. Rival quantum computing companies Quantinuum (QNT +2.06%) and Rigetti Computing (RGTI +2.01%) also won similar $100 million awards under the CHIPS Act today, and both those stocks are up more than 5% on the news. GlobalFoundries (GFS +0.75%) -- a more general semiconductor company and larger in both market capitalization and revenue than any of the pure-play quantum stocks -- received the largest CHIPS Act award of all: $375 million.
That's more money than the three pure-play quantum companies received -- combined. If there's a national champion in this group, it's probably GlobalFoundries, not D-Wave Quantum.
