Shares of Rigetti Computing surged 16.97% during intraday trading on Thursday, driven by significant news of U.S. government investment in the quantum computing sector.

The rally follows reports that the Trump administration, through the Commerce Department, is awarding a total of $2 billion in grants to nine quantum-computing companies and will take equity stakes in some of them. Rigetti Computing is slated to receive up to $100 million in funding over three years under the CHIPS and Science Act, having signed a letter of intent with the government. The deal contemplates the Department receiving an equity stake in Rigetti consistent with the funding amount, aimed at accelerating superconducting quantum computing research and development.

The funding initiative is part of a broader government push to bolster domestic leadership in critical emerging technologies. The news sparked a sector-wide rally, with several other quantum computing firms also seeing substantial gains in pre-market and early trading sessions.