IBM Corp. (NYSE: IBM) may be doubling down on quantum computing efforts, and it puts smaller players like IonQ Inc. (NYSE: IONQ) and Rigetti Computing (NASDAQ: RGTI) in a tough spot. The U.S. Department of Commerce recently tapped the tech giant to receive $1 billion in federal funding in support of a new foundry for quantum-grade superconducting wafers, while smaller rivals like Rigetti are likely to only receive a fraction of that amount. Then, IBM announced in early June that it plans to spend $10 billion of its own money in major quantum computing developments in the coming five years.
These two developments highlight just how much of an advantage a legacy tech player like IBM has over much smaller pure-play quantum firms. While some of these dedicated quantum rivals have aimed to build up cash reserves—to varying degrees of success—the reality is that none of them is likely to be in a position any time soon to rival IBM in spending on a dollar-for-dollar basis. So what might they do to stay competitive as this 115-year-old behemoth leans into quantum?
