Congress Eyes Boosting Quantum Funds as Global Race Heats Up

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Or sign-in if you have an account.(Bloomberg) — US lawmakers from both parties are seeking to boost federal funding for quantum computing as China and other countries race to transition from research to deployment of the nascent technology across defense, intelligence and cybersecurity.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe House later this year is expected to debate defense funding legislation that would increase annual military spending on quantum development and application by 68% to $567 million. A similar effort is underway in the Senate to fund the nascent technology, which researchers believe could provide a range of new capabilities in everything from drug discovery to computing encryption standards. The congressional moves buttress work within the Trump administration, which in May announced plans to pour more than $2 billion into the industry through direct federal investments. In June, President Donald Trump signed an executive order aimed at advancing quantum research and development and another mandating federal agencies take steps to insulate their IT systems against quantum computer-based cyberattacks. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againDespite a slate of recent technological breakthroughs, investors remain skeptical of the industry’s near-term commercial success, according to Philip Singerman, senior adviser at the Center for Strategic and International Studies. Shares of leading pure-play quantum companies including D-Wave Quantum Inc., Infleqtion Inc. and Rigetti Computing Inc. have fallen sharply since the start of the year as investor enthusiasm for the technology, which had been hailed by analysts as the next market-defining computing revolution after artificial intelligence, has cooled. Global X’s AI and Technology ETF, which holds a basket of top AI and semiconductor stocks, has risen 20% over the same period.Another quantum company, College Park, Maryland-based IonQ Inc., last week closed its $1.8 billion acquisition of semiconductor foundry SkyWater Technology Inc. after federal regulators ended their review of the deal without taking any action to stop it. IonQ on Wednesday raised its full-year revenue forecast, and its shares have recouped most of their losses for the year.Nonetheless, funding quantum has quickly become a political priority as governments line up financing in the race for superiority on a technology that ultimately could pose security threats, breaking the systems that protect banks and government data.A mix of startups and large firms, including Microsoft Corp. and Alphabet Inc.’s Google, are trying to apply quantum physics to make computers exponentially more powerful than today’s machines. These companies are betting that the nascent field, which uses the rules of subatomic particles to manipulate and transmit information, is getting closer to delivering real-world progress in fields like drug discovery and finance.There’s also the race against China, which has established a $10 billion National Laboratory for Quantum Information Sciences, while Europe and the UK combined have committed nearly three times as much public money as the US to develop the technology, according to estimates compiled by industry consultancy QBN.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.“In China, you see a massive push toward quantum leadership,” said Darío Gil, under secretary for science at the Department of Energy. “That’s the one that I’m most focused on.”One sign of quantum’s growing political salience in Washington is an uptick in interactions between policymakers and industry insiders, according to Infleqtion Inc. Chief Executive Officer Matt Kinsella. Quantum executives and lobbyists are increasingly engaging with politicians to explain the technology’s complexities and help craft policies that address the industry’s needs.“When we first started doing this two years ago, we struggled to get meetings with staffers on the Hill,” Kinsella said in an interview. “Now, we’re meeting directly with senators and representatives.”Indeed, the White House in July hosted a quantum tech summit with industry leaders focused on strengthening domestic supply chains, workforce development and sharing private sector insights. The event featured a panel of top tech policy officials from the White House, National Science Foundation and Departments of Defense, Energy and Commerce. Also present were executives from leading quantum firms including International Business Machines Corp., PsiQuantum Corp. and Infleqtion.The four pure-play quantum companies slated to receive Commerce Department grants — Infleqtion, D-Wave, PsiQuantum and Quantinuum Ltd. — have recently doubled their total annual lobbying spending to $2.2 million, according to disclosures.“When your concern is access — not just your own access, but your competitors’ access — you’re forced to consider and play that game,” said Tad DeHaven, a policy analyst at the libertarian-leaning Cato Institute. “It’s only logical that this environment that the White House has created is going to fuel lobbying.”Another possible catalyst fueling quantum’s rise to prominence in Washington is the Trump administration’s financial ties to the sector, DeHaven said.PsiQuantum, which is due to receive $100 million from the Commerce Department, last year raised $1 billion from a group of investors including 1789 Capital, the venture capital firm at which Donald Trump Jr. is a partner. D-Wave, which was allotted an equal sum by Commerce, was taken public in 2022 under Emil Michael, now a top Pentagon official.The White House did not respond to a request for comment.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.