D-Wave Stock Climbs After Finalizing $100 Million CHIPS Act Funding Agreement

D-Wave Quantum (NASDAQ:QBTS) saw its stock climb 4.5% in Tuesday's session after revealing it had reached a final agreement with the Commerce Department valued at as much as $100 million from the CHIPS and Science Act.

The company said the funds will support research and development across its superconducting annealing and gate-model quantum computing technologies.

D-Wave plans to channel the funds into accelerated development of its next-generation quantum computers, including a 100,000-qubit annealing system aimed at applications in optimization, materials simulation, blockchain and artificial intelligence. The award will also support the development of a 10,000-qubit gate-model system built to yield 100 logical qubits capable of performing more than one million operations for quantum chemistry and quantum AI applications.

The agreement follows the previously announced letter of intent between D-Wave and the Commerce Department. As a condition tied to receipt of the funding, the U.S. Department of Commerce is set to receive a minority, non-controlling equity stake in the company.

D-Wave CEO Dr. Alan Baratz said the company is grateful to the U.S. government for the award and for its leadership in advancing quantum innovation.

D-Wave says it is the only quantum computing company that offers a dual-platform approach, with both annealing and gate-model systems, software, and services. The award is intended to bolster U.S. quantum computing capabilities and the domestic supply chain required to commercialize quantum systems, the company said.

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