Executive Order Aims to Accelerate Quantum Computing Development, Targeting 2028 for Research System

Stock News
Jun 23

President Trump has signed an executive order designed to accelerate quantum research, laying a foundation for federal agencies to adopt the technology and strengthening U.S. defense capabilities against cyberattacks.

Speaking at the White House, Trump stated the orders would enhance America's position "as the global leader in this very important vertical emerging field." He added, "We are far ahead already, and now we are going to be further ahead."

Quantum computing is a nascent field with profound implications for national security, sparking a competition for dominance between the United States and China. Alphabet President Ruth Porat and IBM CEO Arvind Krishna also attended the signing ceremony. Shares of IBM Corp (IBM.US) rose 2.4% in after-hours trading.

Trump indicated the first order would initiate an effort to create a quantum computer capable of significant scientific calculations. White House officials, briefing reporters anonymously before the signing, expressed confidence that such a computer could be developed by 2028.

Officials stated the order also directs agencies to develop plans for deploying quantum-capable sensors and networks within the next five years. Furthermore, it supports coordination with allies to protect quantum intellectual property and secure supply chains.

The second order is intended to accelerate the U.S. deployment of algorithms resistant to quantum cyberattacks, requiring agencies to migrate their high-value assets to these standards, known as "post-quantum cryptography," by 2031 at the latest.

Currently, quantum technology remains largely theoretical and unproven at scale, but it could one day become powerful enough to break the standard encryption widely used today to protect the privacy of vast amounts of information, such as bank payments.

The U.S. Commerce Department stated in 2024 that it had approved three algorithms that can run on traditional computers and are believed to be resistant to potential quantum cyberattacks. The U.S. has long sought ways to protect itself from such attacks, with a Commerce office searching for risk-reducing technology since at least 2016.

Senior White House officials declined to specify which companies the U.S. would partner with to implement the orders. However, according to a briefing, the orders include a provision directing the government to partner with domestic industry participants, which could provide broad support for the quantum sector.

This year, valuations for quantum computing companies have surged significantly, riding a wave of interest in artificial intelligence as some investors bet on the next potential technological breakthrough.

Officials said the Department of Energy will set technical specifications for building a research-focused quantum computer but cautioned this is just a step towards more powerful quantum systems. The computer is expected to be delivered to a national laboratory or other Department of Energy facility.

The administration has adjusted its posture to benefit from the industry's success. In May, the Commerce Department announced it would provide over $2 billion in funding in exchange for non-controlling equity stakes in a group of quantum computing companies, including IBM and GlobalFoundries.

IBM Corp (IBM.US) is set to receive $1 billion, GlobalFoundries $375 million, and companies like D-Wave Quantum, Rigetti Computing, and Infleqtion (INFQ.US) will each receive roughly $100 million in support.

For decades, technologists and physicists have sought to harness the perplexing mechanics of quantum physics to create so-called supercomputers with exponentially greater performance than traditional machines. The industry has achieved some breakthroughs but continues grappling with the challenges of scaling the technology for practical application.

The order's requirement for NASA, the Commerce, Defense, and Energy Departments to deploy quantum-capable sensors and networks could stimulate demand for companies producing these products.

Officials noted that agencies, in coordination with the Office of Management and Budget (OMB), can use existing funds to adopt quantum technology and build the research-focused quantum machine.

According to a briefing, the directives signed on Monday also include initiatives aimed at better protecting the quantum industry from espionage and expanding the workforce through apprenticeships and other means.

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