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Alphabet (GOOGL, Financials) has offered new details on why it chose not to participate in the Trump administration's $2 billion quantum computing initiative, despite growing competition between the U.S. and China in the emerging technology.

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Speaking at the Semafor Tech Summit, Google Quantum AI COO Charina Chou said the company passed on the funding because some of the attached conditions would have limited its ability to move at the pace it believes is necessary to develop practical quantum computing systems.

While Google did not disclose the specific requirements tied to the program, Chou emphasized that the company continues to work with government agencies in other areas and supports broader investment in basic quantum research.

The decision stood out because several major industry players, including IBM, GlobalFoundries, Rigetti Computing, PsiQuantum and Infleqtion, joined the initiative. Microsoft and IonQ were also absent from the list of funding recipients.

For investors, the announcement underscores Google's confidence in its own quantum roadmap and financial resources. Rather than relying on government funding, the company appears focused on maintaining flexibility as the race to build commercially viable quantum computers accelerates.

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Alphabet (NASDAQ:GOOGL) is staying out of President Donald Trump's $2 billion quantum computing funding initiative, and the decision could say as much about speed as it does about strategy. Speaking at the Semafor Tech Summit in San Francisco on June 10, Google Quantum AI COO Charina Chou said Google declined to join because various conditions that came with the funding could have slowed the company's push to build a practical quantum computer.

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The exact conditions have not been disclosed, but the broader goal was clear: strengthen the U.S. quantum ecosystem and counter China's rapid advances in the field. The program was structured as letters of intent rather than final agreements, with International Business Machines (NYSE:IBM), GlobalFoundries (NASDAQ:GFS), Quantinuum, PsiQuantum, Rigetti Computing (NASDAQ:RGTI), and Infleqtion (NYSE:INFQ) among the listed beneficiaries. Chou added that Google still works with Washington in other ways and supports more funding for basic quantum research.

For investors, the bigger story could be the widening split over how quantum computing should be funded, scaled, and protected. PsiQuantum co-founder Pete Shadbolt defended public investment, saying it was really natural because quantum technology has national security implications, while IBM executive Scott Crowder said IBM expects its first scalable quantum system by 2029. The comments also help explain why Alphabet, Microsoft Corporation (NASDAQ:MSFT), and IonQ (NYSE:IONQ) were missing from the nine recipients announced in May 2026. Alphabet stock was trading about 2.51% lower at roughly $347.46 on Thursday.

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Alphabet (NASDAQ:GOOGL) said it passed on President Trump's $2 billion quantum-computing funding effort because the terms could have slowed its work on a practical machine, according to comments at the Semafor Tech Summit in San Francisco on June 10.

Alphabet Quantum AI Chief Operating Officer Charina Chou said the program came with conditions that did not fit the company's pace. She did not detail those terms, and Alphabet said it still works with Washington in other ways while backing more spending on basic research.

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The package, structured as letters of intent rather than final contracts, was aimed at strengthening the U.S. quantum ecosystem and helping it keep up with China, the report said. IBM (NYSE:IBM), GlobalFoundries (NASDAQ:GFS), Quantinuum, PsiQuantum, Rigetti Computing (NASDAQ:RGTI) and Infleqtion (INFQ) were among the groups linked to the effort.

Alphabet shares were trading about 3% lower on Thursday. The disclosure adds to debate over public funding in quantum computing, a field some companies say may carry national security implications and long development timelines. Microsoft Corporation (NASDAQ:MSFT) and IonQ (NYSE:IONQ) were also absent.

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Seven days after completing the largest pure-play quantum computing IPO on record, Honeywell HON-backed Quantinuum's QNT stock has lost roughly 15% of its value, falling from its $60 IPO price to around $51. The decline suggests that the market is moving beyond IPO enthusiasm and beginning to assess whether the company's long-term growth prospects justify its valuation.

For investors, this may be the right time to reassess the opportunity and determine whether the recent pullback offers an attractive entry point or signals a need for caution.Zacks Investment Research

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How Quantinuum Compares With IonQ and D-Wave

More importantly, can Quantinuum replicate the wealth-creating trajectories witnessed in quantum computing leaders such as IonQ IONQ and D-Wave Quantum QBTS, or does its current valuation already reflect much of its future potential? Investors must now look beyond the post-IPO price action and assess whether Quantinuum's technological leadership and progress in commercialization are sufficient to justify its multi-billion-dollar valuation.

Like Quantinuum, both IONQ and QBTS stocks experienced significant volatility after going public. While D-Wave's shares struggled for an extended period before surging on renewed enthusiasm for quantum computing applications, IonQ gradually gained its position as the sector's benchmark through consistent technological progress, expanding customer relationships and growing commercial bookings.

Quantinuum, however, enters the public markets with advantages that neither IonQ nor D-Wave possessed at listing. Honeywell retains an approximately 48% stake in the company, providing strategic backing and financial stability.

Strong Capital Base Supports Long-Term Growth Outlook

Beyond its technology, Quantinuum's capital position is perhaps one of its biggest competitive advantages. The company raised approximately $600 million in a private funding round in September 2025 at a $10 billion pre-money valuation, attracting investors like NVentures, JPMorganChase and Amgen. It then raised an additional $1.68 billion through its June 2026 IPO, giving it one of the strongest balance sheets among publicly traded quantum computing companies. The funding is expected to support continued technology development, commercialization efforts and the company's long-term goal of achieving universal fault-tolerant quantum computing.

Quantinuum also benefits from Honeywell's continued ownership stake and a growing ecosystem of strategic partnerships spanning NVIDIA, RIKEN, SoftBank and others. Unlike many emerging quantum companies that may eventually require additional financing to sustain operations, Quantinuum appears well-capitalized to execute its roadmap. The key challenge now is not access to capital, but converting its technological leadership and industry relationships into sustained revenue growth and broader commercial adoption.

Story Continues

Final Take

Unlike many emerging quantum computing companies that may eventually require additional financing to sustain operations, Quantinuum appears well-capitalized to execute its roadmap. However, investors should not overlook the valuation challenge. The company generated only $30.9 million in revenues in 2025 while reporting a net loss of roughly $193 million. As a result, the investment case ultimately hinges not on access to capital, but on Quantinuum's ability to translate its technological leadership, industry relationships and financial resources into sustained revenue growth and broader commercial adoption.

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This article originally published on Zacks Investment Research (zacks.com).

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[Google Chicago Fulton Market building. Google is a technology company known for search engine, browser and online advertising.]

As the U.S. races against China in quantum computing, one name was notably missing from President Donald Trump's $2B funding initiative—Alphabet (GOOGL [https://seekingalpha.com/symbol/GOOGL]).

Now, Google has revealed why it chose to stay out, and the decision highlights a growing debate over how much government involvement could shape the future of the technology.

Speaking at the Semafor Tech Summit in San Francisco on June 10, Google Quantum AI COO Charina declined to join the Trump administration's $2B quantum computing [https://seekingalpha.com/news/4595634-quantum-computing-is-the-latest-us-government-equity-bet] funding initiative because "various conditions that came with the funding" would have prevented the company from moving at its preferred pace.

The conditions attached to the program could have slowed its push to build a practical quantum computer, reported [https://finance.yahoo.com/sectors/technology/articles/google-spurned-u-quantum-fund-140235176.html] Yahoo Finance.

However, the exact conditions tied to the funding have not been disclosed. Chou added that the company still works with Washington "in other ways" and supports more funding for basic quantum research.

According to Semafor, the package was aimed at strengthening the U.S. quantum ecosystem and countering China's rapid advances in the field.

The program, structured as letters of intent rather than final agreements, included names like International Business Machines (IBM [https://seekingalpha.com/symbol/IBM]), GlobalFoundries (GFS [https://seekingalpha.com/symbol/GFS]), Quantinuum, PsiQuantum, Rigetti Computing (RGTI [https://seekingalpha.com/symbol/RGTI]), and Infleqtion (INFQ [https://seekingalpha.com/symbol/INFQ]) among other beneficiaries.

The debate over government funding was echoed by PsiQuantum co-founder Pete Shadbolt, who defended public investment in the industry, saying it was "really natural" because quantum technology has "national security implications."

Meanwhile, International Business Machines executive Scott Crowder said the company expects its first scalable quantum system by 2029.

These comments provide fresh insight into why Alphabet [https://seekingalpha.com/news/4602356-eyes-on-the-sky-walmart-and-alphabets-wing-expand-their-drone-delivery-program] (GOOGL [https://seekingalpha.com/symbol/GOOGL]), Microsoft Corporation (MSFT [https://seekingalpha.com/symbol/MSFT]), and IonQ (IONQ [https://seekingalpha.com/symbol/IONQ]) were absent from the Trump administration's list of nine recipients announced in May 2026.

Additionally, on the market side, Alphabet stock is trading ~2.51% lower at ~$347.46 on Thursday.

MORE ON ALPHABET

* Alphabet And Microsoft: Holding The Winner, Buying The Laggard [https://seekingalpha.com/article/4913480-alphabet-and-microsoft-holding-the-winner-buying-the-laggard]
* Alphabet's $84.75B Equity Plan Looks Like A Red Flag - It Isn't (For Now) [https://seekingalpha.com/article/4913238-alphabets-84-75b-equity-plan-looks-like-a-red-flag-it-isnt-for-now]
* Alphabet: CapEx Pressure Is Real, But The Long-Term AI Opportunity Is Bigger [https://seekingalpha.com/article/4913062-alphabet-capex-pressure-is-real-but-the-long-term-ai-opportunity-is-bigger]
* Wall Street may be lowballing hyperscaler capex - Goldman [https://seekingalpha.com/news/4602619-wall-street-may-be-lowballing-hyperscaler-capex---goldman]
* Google talking to Samsung about manufacturing part of TPU: report [https://seekingalpha.com/news/4602597-google-talking-to-samsung-about-manufacturing-part-of-tpu-report]

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Investing.com -- Google, a major player in quantum computing, declined to participate in the U.S. government's recent $2 billion funding initiative for the sector, citing concerns that the program could slow the technology's development.

Google Quantum AI COO Charina Chou confirmed the decision at the Semafor Tech Summit in San Francisco on June 10, saying the company walked away because of "various conditions that came with the funding" that would have prevented it from moving at its desired pace toward building a functional quantum computer. The disclosure sheds new light on why Google — alongside Microsoft and IonQ — was conspicuously absent from the Trump administration's list of nine quantum recipients announced last month.

The $2 billion package, structured as letters of intent rather than finalized deals, was announced in May 2026 and included IBM, GlobalFoundries, Quantinuum, PsiQuantum, Rigetti Computing, and Infleqtion, among others, as part of a broader push to counter China's accelerating quantum capabilities and fortify the domestic supply chain for the technology, Semafor reported. The precise conditions attached to the capital have not been publicly disclosed, and it remains unclear whether the funding could be unlocked against technological milestones — a detail that, according to Semafor citing a person familiar with the matter, has not been fully explained.

Chou was careful to frame Google's refusal as specific to this program rather than a wholesale rejection of government partnership. The company is working with Washington "in other ways," she said, and she called on the administration to expand funding for basic quantum research — the kind conducted at national laboratories that Google already partners with. The implication was that Google objects to strings-attached commercial grants, not to the principle of public investment in the field.

That distinction was underscored by PsiQuantum co-founder Pete Shadbolt, who spoke at the same event and defended government involvement. "It was 'really natural' for the U.S. government to invest in the sector because of quantum's profound geopolitical implications," Shadbolt said. "It has national security implications." PsiQuantum is one of the nine recipients of the administration's funding.

Beyond the funding dispute, Chou raised a separate concern with potentially broader implications for the industry: the difficulty of recruiting international academic talent under the Trump administration's tightening immigration and visa policies. "We're going to need to get the best talent from all over the world to make this technology possible," she said, warning that the current climate is "challenging" and that restricting global talent flows could undermine the United States' ability to stay ahead of China.

Story Continues

Analysts at Cohen & Company Capital Markets flagged, per Semafor, that the absence of Google, Microsoft, and IonQ from the recipient list could represent a "comparative disadvantage" for those companies in future U.S. government contracting — a real commercial consideration as agencies begin specifying quantum requirements in procurement. IBM, for its part, is among the funded companies and has told investors it expects to deliver its first effective, scalable quantum system by 2029, according to IBM VP of quantum adoption Scott Crowder, as reported by Semafor.

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Key Points

Quantinuum’s stock has dropped below its IPO price. Its high valuation, steep losses, and customer concentration issues weighed down its stock.10 stocks we like better than Quantinuum ›

Quantinuum(NASDAQ: QNT), formed from the merger of Honeywell's (NASDAQ: HON) quantum computing division and UK-based Cambridge Quantum, went public at $60 per share on June 4. But as of this writing, its stock trades at about $51. Let's see why this quantum stock fizzled out -- and if it's worth buying as the bulls look the other way.

What does Quantinuum do?

Quantinuum, like its chief competitor IonQ(NYSE: IONQ), uses trapped-ion systems to power its quantum systems. Unlike older electron-driven systems, which require cryogenic refrigeration and exhibit high error rates, trapped-ion systems exhibit higher fidelity and don't require refrigeration.

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Image source: Getty Images.

Quantinuum and IonQ are scaling their trapped-ion systems in different ways. Quantinuum uses a "shuttling" system that moves individual ions through a grid, while IonQ connects multiple ions via quantum-entangled fiber-optic cables known as photonic links.

Both companies use their own proprietary metrics to gauge their quantum computing power, making direct comparisons difficult. They both market themselves as "full-stack" quantum computing companies that serve the software, hardware, and application markets.

However, Quantinuum tries to lock developers into its own ecosystem through TKET, its proprietary compiler. IonQ supports a wider range of open-source quantum frameworks.

Why isn't Quantinuum attracting much interest?

In 2025, Quantinuum's revenue rose 34% to $30.9 million, but its net loss widened from $144.1 million to $192.6 million. Most of its revenue came from leases, which are highly concentrated and volatile (a single lease accounted for $16.5 million in revenue in 2025). The rest of its revenue mainly comes from its cloud-based quantum computing services.

Over the long term, Quantinuum expects to sell more quantum software to commercial customers in the cybersecurity, chemistry, and materials sciences markets. But at its current market cap of $14.3 billion, it trades at 463 times last year's sales. IonQ, which more than doubled its revenue to $269 million in 2025, is worth $21.2 billion -- or 79 times its trailing sales.

Quantinuum's sky-high valuation made it a tough stock to buy, especially when IonQ was bigger, growing faster, and locking in more high-profile contracts. The market's current obsession with upcoming IPOs such as SpaceX, Anthropic, and OpenAI exacerbated that pressure.

Quantinuum recently drew significant attention when it secured up to $100 million in funding from the Department of Commerce as part of the CHIPS and Science Act. But for now, it's still a speculative quantum stock that simply isn't as attractive as IonQ or the other market leaders.

Should you buy stock in Quantinuum right now?

Before you buy stock in Quantinuum, consider this:

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Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Honeywell International and IonQ. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The Morning Bull - US Market Morning Update Wednesday, Jun, 10 2026

US stock futures are pointing slightly higher this morning, with key contracts on the S&P 500 and Nasdaq up around 0.2% to 0.7%, as investors weigh cooler US inflation expectations against a climb in government bond yields. The US 10 year yield is around 4.57%, which means borrowing costs across mortgages, credit cards, and business loans remain relatively high. At the same time, one year ahead US consumer inflation expectations sit at 3.5%, suggesting households see price pressures easing. The puzzle for investors is whether this mix keeps pressure on interest rate sensitive areas like real estate and utilities while growth oriented sectors such as technology and smaller companies stay in focus.

With inflation expectations easing but borrowing costs still elevated, focus on 63 resilient stocks with low risk scores to stay selective.

Top Movers

Credicorp (BAP) surged 9.29%. Amphenol (APH) jumped 7.29% after a Barclays price target increase tied to AI growth expectations. Rocket Companies (RKT) gained 6.72% following news around a proposed private offering and funding plans.

Is Rocket Companies still a smart investment or just hype? Read our most popular narrative and get all the answers you need.BAP 1-Year Stock Price Chart

Top Losers

Coherent (COHR) declined 11.44% after commentary comparing its valuation to other optical component peers. IonQ (IONQ) fell 9.73% following recent earnings and continued pressure on quantum computing stocks. IREN (IREN) declined 8.73% despite earlier optimism around its Australian data center plans.

If you want to see how other stocks with similar risk profiles are trading after moves like these, turn to 63 resilient stocks with low risk scores.

Look past the noise - uncover the top narrative that explains what truly matters for Coherent's long-term success.COHR 1-Year Stock Price Chart

On The Radar

Earnings from large software and housing companies sit alongside ongoing US inflation data focus over the next few sessions.

US Inflation Data Focus: Upcoming CPI and PPI readings this week keep attention on how inflation trends align with Fed policy. Oracle (ORCL): Q4 2026 results on Wednesday will spotlight cloud demand trends and any commentary on enterprise IT spending. Adobe (ADBE): Q2 2026 earnings on Thursday will highlight subscription growth and how customers are adopting new AI related tools. Lennar (LEN): Q2 2026 report on Thursday will give a closer look at US housing demand and pricing with higher mortgage costs.

Story Continues

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Rackspace Technology hat angekündigt, seine regionale Hauptverwaltung in Riad, Saudi-Arabien einzurichten, um die Wachstumsrate von Cloud- und AI-Lösungen im Mittleren Osten zu stärken. Durch diese strategische Maßnahme soll der digitale Wandel in der Region unterstützt werden, insbesondere in Übereinstimmung mit dem Vision 2030-Schwerpunkt Saudi-Arabiens. Rackspace Technology plant, sich näher an seine Kunden und Partner im Mittleren Osten zu positionieren, um die lokale Lieferung von Cloud- und AI-Lösungen zu verbessern und Innovation und Wirtschaftswachstum in einer der schnell wachsenden digitalen Ökonomien der Welt zu fördern.

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Der US-Aktienmarkt zeigt sich leicht gestiegen, da Investoren die starken Arbeitsmarktdaten gegen höhere Zinsen abwägen. Die Non-Farm-Payrolls zeigten 172.000 neue Jobs im Mai und die Arbeitslosenquote blieb bei 4,3 %. Gleichzeitig liegt der 10-Jahres-Treasury-Rendite bei etwa 4,57 %, was Hypotheken, Kreditkarten und Geschäftskredite relativ teuer macht.