The Commerce Department just threw cold water on today's explosive Wall Street Journal report about the Trump administration negotiating equity stakes in quantum computing companies. In a terse statement to CNBC, a Commerce spokesperson flatly denied any ongoing talks with quantum firms like IonQ, Rigetti, and D-Wave - contradicting earlier reporting that had sent quantum stocks soaring up to 13% in Thursday trading.
The Trump administration's quantum computing strategy just hit a major snag. Hours after the Wall Street Journal sent quantum stocks flying with reports of government equity negotiations, the Commerce Department issued a blunt denial that stopped the rally in its tracks.
"The Commerce Department is not currently negotiating equity stakes with quantum computing companies," the spokesperson told CNBC in a statement that directly contradicts the morning's bombshell reporting.
The contradiction creates a confusing picture around what seemed like a clear expansion of the Trump administration's unprecedented government ownership strategy. The WSJ had cited sources familiar with the matter claiming talks were underway with major players including IonQ, Rigetti Computing, and D-Wave Quantum - exactly the kind of companies you'd expect Washington to target given quantum's national security implications.
Markets had already responded enthusiastically to the initial report. Rigetti Computing jumped 7% during Thursday trading, while IonQ climbed 7% and D-Wave surged 13%. Even Quantum Computing Inc rode the wave up 5%, despite not being named in the original WSJ piece.
The denial comes at a particularly awkward moment for the administration's broader equity strategy. Just three months ago, the government took a 10% stake in Intel as part of the chipmaker's massive federal funding package. The administration also grabbed a 15% stake in MP Materials, the rare earth mining company, citing national security concerns around China's export restrictions.
Commerce Secretary Howard Lutnick has been the driving force behind this government ownership push, arguing taxpayers should share in the upside when federal dollars fuel private sector success. The strategy marked a dramatic departure from traditional U.S. industrial policy, where government funding typically came with strings attached but not equity stakes.
