Shares of quantum computing companies soared on Thursday after the U.S. government unveiled plans to channel $2 billion into the emerging sector, marking one of Washington’s most aggressive efforts yet to secure American leadership in what many see as the next major technological arms race after artificial intelligence.

The funding package, announced by the National Institute of Standards and Technology, will provide grants to nine companies developing quantum hardware and infrastructure, with the federal government also taking minority, non-controlling stakes in each recipient.

The move triggered a sharp rally across the sector, underscoring how investors increasingly view quantum computing as transitioning from a speculative research field into a strategically important industry with major commercial and national security implications.

IBM emerged as the biggest beneficiary, securing a proposed $1 billion award from the U.S. Commerce Department. Its shares climbed about 7% after the company confirmed plans to work with the government on building what it described as America’s first purpose-built quantum foundry.

The initiative will be developed through a newly created IBM-backed entity called Anderon, which the company said will be headquartered in Albany, New York, and operate as a 300-millimeter quantum wafer manufacturing facility. IBM said it would match the government’s proposed grant with its own $1 billion investment, signaling how public funding is increasingly being used to accelerate private-sector development in strategically sensitive technologies.

“Headquartered in Albany, New York as a standalone company, Anderon will operate as a state-of-the-art 300-millimeter quantum wafer foundry,” IBM said in a statement.

“It will help the nation solidify its leadership at the center of a thriving new quantum industry that is estimated to generate up to $850 billion in economic value by 2040 and spur American economic growth while also bolstering national security.”

The announcement comes off as a part of a growing shift in U.S. industrial policy, where Washington is moving beyond semiconductors and artificial intelligence into quantum technologies that could eventually transform computing, encryption, logistics, pharmaceuticals, materials science, and military systems.

Quantum computing differs fundamentally from classical computing because it uses quantum bits, or qubits, capable of processing multiple states simultaneously rather than the binary ones and zeros used by traditional computers. Developers argue that sufficiently advanced quantum systems could solve highly complex optimization and simulation problems beyond the reach of today’s most powerful supercomputers.

That potential has intensified global competition among governments and corporations, particularly between the United States and China, both of which increasingly view quantum technology as strategically critical infrastructure.

The latest funding wave is being financed through the CHIPS and Science Act of 2022, the same legislation that fueled a massive expansion of U.S. semiconductor manufacturing incentives following supply chain disruptions and rising geopolitical tensions with China.

Beyond IBM, the grant allocations highlighted the growing diversity of quantum approaches being pursued across the industry. GlobalFoundries is set to receive $375 million, reinforcing the importance of semiconductor fabrication expertise in scaling quantum hardware production.

Meanwhile, D-Wave Quantum, Rigetti Computing, and Infleqtion are each expected to receive around $100 million.

The market reaction was explosive. Shares of D-Wave Quantum and Rigetti Computing jumped roughly 25%, while Infleqtion surged about 30%.

The rally quickly spread beyond direct grant recipients. Arqit Quantum soared 30%, IonQ gained 12%, and Quantum Computing Inc. advanced 17% as investors poured into the broader sector.

The sharp gains also denote growing investor expectations that the U.S. government may continue expanding direct support for quantum infrastructure, similar to how federal spending accelerated semiconductor and AI development.

Importantly, the announcement signals a shift from pure research toward industrial-scale commercialization. For years, quantum computing was dominated by university laboratories and experimental prototypes with uncertain commercial timelines. The creation of dedicated foundries and manufacturing ecosystems is seen as an indication that policymakers now view scalable production capacity as essential to maintaining technological leadership.

The foundry concept is notable because quantum systems require highly specialized fabrication processes that differ from conventional semiconductor manufacturing. Industry executives believe that without domestic manufacturing infrastructure, the United States risks falling behind in both intellectual property and production capabilities.

The timing of the announcement also comes as quantum computing is gaining increasing relevance in cybersecurity and defense circles. Advanced quantum machines could eventually break widely used encryption systems, making the technology strategically important not just for economic competitiveness but also for intelligence and military operations.

That national security dimension helps explain why Washington is now deploying industrial-policy tools previously reserved for chips and defense manufacturing.

For investors, however, the rally also highlights the speculative nature of the sector. Most publicly traded quantum firms remain deeply unprofitable and generate limited commercial revenue. Many years are away from producing fault-tolerant systems capable of large-scale industrial deployment.

Still, the government’s intervention may alter how markets value those companies. Federal backing provides not only funding but also validation that quantum computing is moving closer to becoming a national priority rather than a distant scientific experiment.