IBM announced on May 28 local time that it will invest over $10 billion in quantum computing over the next five years, covering R&D, capital expenditures, ecosystem partnerships, manufacturing expansion, and acquisitions. The goal is to build the world’s first large-scale quantum computer (codename Quantum Starling) by 2029 that can stably and error-free perform complex computing tasks. Following the announcement, IBM’s stock rose over 5% in early trading, while quantum computing stocks Infleqtion gained over 4%, QUBT rose nearly 3%, and IonQ was up 3%.
This announcement comes on the heels of the quantum strategy the Trump administration unveiled last week — the U.S. Department of Commerce announced it would invest a total of approximately $2 billion in equity in nine quantum computing companies. IBM is expected to receive roughly half of that funding, which will be used to support the establishment of Anderon, the nation’s first dedicated quantum chip manufacturing plant in Albany, New York. IBM itself is contributing an additional $1 billion to Anderon. According to documents IBM filed with the SEC, the company has already deployed over 90 quantum systems, more than all other industry participants combined, and over 325 Fortune 500 companies and institutions are using its systems to tackle complex problems in chemistry, biology, and materials science. However, quantum computing still faces core technical hurdles such as high error rates. Alphabet CEO Sundar Pichai said last year that truly practical quantum computers may still be five to ten years away.