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What happened: Quantum-related stocks IBM (IBM), D-Wave Quantum (QBTS), Rigetti Computing (RGTI), and Infleqtion (INFQ) surged higher this past week. IBM was up more than 14% in the past five trading sessions, while the others rose more than 30%.

What’s behind the move: The companies announced they signed letters of intent with the Department of Commerce to receive money for research and development projects.

The funding is part of a government initiative announced on Thursday to distribute more than $2 billion in federal incentives to nine quantum-related firms in exchange for a minority stake in those companies.

What else you need to know: IBM said the Department of Commerce will contribute $1 billion to launch Anderon, a new standalone company to create a quantum chip foundry in Albany, NY. Meanwhile, IBM will also put $1 billion of its own cash into Anderon.

Rigetti will also receive $100 million in CHIPS Act funding over three years, with the Department of Commerce taking an equity stake in the company in exchange for the capital.

D-Wave Quantum and Infleqtion announced similar $100 million letters of intent tied to ownership interests.

Shares of D-Wave, Rigetti, and Infeqtion all jumped roughly 25% on Thursday immediately following the announcements.

“While quantum computing still carries meaningful technological and commercialization risks, government co-investment may give institutional investors greater confidence to evaluate these companies more seriously,” said Brandon Sun, managing director at Cohen Capital Markets, who has advised several quantum companies on their paths to going public.

The Trump administration has leaned into a strategy of funding companies in exchange for equity stakes. It first pursued this approach with mineral suppliers such as MP Materials (MP). Its biggest deal of this sort was announced last year with chipmaker Intel (INTC).

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

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