Updated
Updated · The Washington Post · Jul 12
Commerce Department Offers $2 Billion for 9 Quantum Stakes as Trump Expands State Ownership
Updated
Updated · The Washington Post · Jul 12

Commerce Department Offers $2 Billion for 9 Quantum Stakes as Trump Expands State Ownership

1 articles · Updated · The Washington Post · Jul 12

Summary

  • More than $2 billion in May letters of intent would give the Commerce Department minority stakes in nine quantum-computing companies, extending the administration’s use of equity deals to shore up strategic supply chains.
  • Those investments build on Trump’s remaking of the 2022 CHIPS and Science Act, shifting some Biden-era grant programs toward direct government ownership in sectors tied to semiconductors, rare earths, nuclear power and rocket motors.
  • About $60 billion in nearly two dozen deals has already been announced, including a 15% MP Materials stake and a 10% Intel stake; one estimate says taxpayers could hold pieces of as many as 200 companies by 2029.
  • The expansion jars with Trump’s attacks on Democrats as quasi-communists, while critics from libertarians to some Trump allies warn opaque state ownership can distort competition, entrench weak firms and invite political favoritism.
  • Polling shows only 8% of Americans identify as socialist, yet 39% to 35% favor a bigger government providing more services, underscoring a broader shift in support for a more interventionist state.

Insights

What happens to market competition when a government holds ownership stakes in leading technology and resource companies?
As governments become major shareholders in key industries, is the world witnessing the rise of a new 'national capitalism' economic model?