D-Wave Quantum Shares Rise on $100 Million CHIPS Act Funding Agreement

Shares of D-Wave Quantum (NASDAQ: QBTS) climbed 4.5% on Tuesday after the company announced it has finalized a definitive agreement with the U.S. Department of Commerce for up to $100 million in funding under the CHIPS and Science Act.

Funding to Accelerate R&D

The capital is designated to support D-Wave's research and development of its dual quantum computing platforms, the company stated. The funding aims to accelerate the development of its next-generation superconducting annealing and gate-model quantum computers.

Key development targets for the funds include:

• A 100,000-qubit annealing system designed for complex applications in optimization, materials simulation, blockchain, and artificial intelligence.
• A 10,000-qubit gate-model system intended to achieve 100 logical qubits, capable of performing over one million operations for quantum chemistry and AI applications.

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"We’re grateful to the U.S. government for this award to D-Wave and for the leadership it is demonstrating in advancing quantum innovation," said Dr. Alan Baratz, CEO of D-Wave, in a statement. The company noted the award is intended to strengthen domestic quantum computing capabilities and the associated supply chain.

Agreement Terms

The definitive agreement follows a previously announced Letter of Intent between D-Wave and the Commerce Department. As a condition of the funding, the U.S. government will receive a minority, non-controlling equity stake in D-Wave.

D-Wave, which positions itself as the only company providing both annealing and gate-model quantum systems, is a key recipient in the government's broader effort to bolster the domestic high-tech sector through the CHIPS and Science Act.