D-Wave Quantum Inc. (NYSE: QBTS) announced that it has signed a Letter of Intent (LOI) with the U.S. Department of Commerce for $100 million in proposed funding under the CHIPS and Science Act. The LOI, which is non-binding, outlines that D-Wave would issue $100 million in shares of its common stock to the Department of Commerce upon execution of final award documents. This potential investment represents a significant endorsement by the U.S. government of D-Wave’s dual-platform quantum computing technologies, which include both annealing and gate-model systems.
The funding, administered by the Department of Commerce, is intended to accelerate D-Wave’s domestic quantum innovation, scale key fabrication processes, and deliver real-world quantum applications to customers. Dr. Alan Baratz, CEO of D-Wave, stated that the award would advance the country’s global leadership in quantum computing and marks a transformative moment for the industry and the United States. The company believes this strategic investment would expedite the development of quantum solutions for complex computational challenges across commercial, government, and research sectors.
D-Wave is the world’s first commercial supplier of quantum computers and the only company offering both annealing and gate-model quantum systems. Its Leap quantum cloud service provides 99.9% availability and uptime, serving over 100 organizations globally. The proposed funding aligns with the CHIPS and Science Act’s goals to bolster domestic semiconductor and advanced computing capabilities, ensuring U.S. competitiveness in critical technologies.
However, the LOI is not a final award, and the company faces risks including the possibility that definitive award documents are not executed, that the Department suspends or terminates negotiations, or that conditions for disbursement are not met. The issuance of shares would also result in dilution for existing stockholders. D-Wave’s forward-looking statements highlight these uncertainties, and the company has filed detailed risk factors with the SEC. The full press release is available at https://ibn.fm/Pj3aV.
