The Commerce Department just threw cold water on Wall Street Journal reports claiming the Trump administration was negotiating equity stakes with quantum computing companies. Despite the official denial, quantum stocks continued their Thursday rally, with D-Wave jumping 13% and other major players posting solid gains as investors seem unconvinced by the government's pushback.
The Trump administration just hit the brakes on quantum computing speculation, but Wall Street isn't buying it. A Commerce Department spokesperson flatly denied WSJ reports claiming the government was negotiating equity stakes with quantum firms, yet D-Wave still surged 13% Thursday while IonQ and Rigetti Computing each gained 7%.
"The Commerce Department is not currently negotiating equity stakes with quantum computing companies," the spokesperson told CNBC in what seemed like a carefully worded denial. The emphasis on "currently" left plenty of room for traders to read between the lines.
The denial comes as quantum computing sits at the center of a global tech arms race that's got everyone from Google to the Pentagon pouring billions into research. Just yesterday, Google claimed a major breakthrough showing their quantum computer could run algorithms 13,000 times faster than traditional machines - the kind of advance that makes government officials nervous about falling behind China.
Commerce Secretary Howard Lutnick has been pushing an aggressive "America First" investment strategy that's already netted the government stakes in critical industries. In August, the administration took a 10% slice of Intel and a 15% stake in rare earth miner MP Materials. The pattern is clear: if it's vital to national security, Trump wants Uncle Sam getting a piece of the action.
"The government should benefit from a company's success, especially where federal funds are involved," Lutnick argued during congressional testimony last month. That philosophy has industry experts calling this the most interventionist approach to private markets in decades.
But quantum computing presents unique challenges. Unlike chips or rare earths, quantum tech is still purely experimental. The entire sector generated less than $750 million in revenue last year according to McKinsey, making it tough to justify equity investments based on current fundamentals.
