US’s big bet on quantum computing may not be entirely legal

In a significant move last week, the U.S. government unveiled a $2 billion investment initiative aimed at quantum computing startups, with $100 million earmarked for various companies in exchange for equity stakes. These investments could prove crucial for startups that are still several years away from delivering products for mainstream use. However, this announcement has drawn criticism from within Congress, where concerns have been raised about the legality of such funding. Zoe Lofgren, a Democratic representative from California and the ranking member of the House Science, Space, and Technology Committee, has expressed her discontent, arguing that the funds were originally designated for public research in semiconductors, not quantum technologies. Lofgren highlighted that the largest portion of this funding is directed towards a new company, Anderon, which is set to begin operations with significant financial backing from both IBM and the U.S. government. This company is positioned to manufacture quantum processing units and will provide its services to IBM and other firms needing advanced hardware. The representative emphasized that the funding should have been allocated through a proper Congressional process, stating, "This announcement is illegal and troubling on so many levels." She clarified that the funds, sourced from the CHIPS and Science Act passed during the Biden administration, were intended specifically for microelectronics research and development, which only partially intersects with quantum processing technology. Moreover, Lofgren pointed out that the funding was meant to support public/private research partnerships, a stipulation that she believes these deals do not meet. She also raised concerns about potential conflicts of interest, noting that a former IBM executive, Dario Gil, is currently involved in the Department of Energy and participated in the discussions that led to the funding. Despite her reservations about the funding process, Lofgren acknowledged the potential merits of investing in quantum processing technologies and the companies involved, emphasizing that any financial support should be properly authorized by Congress.