(The Center Square) – Illinoisans are covering investments and tax breaks for multi-billion-dollar quantum computing companies as Gov. J.B. Pritzker discussed quantum incentives at a festival in Texas.
The governor joined IBM Chairman and CEO Arvind Krishna at South by Southwest in Austin Tuesday.
Pritzker said his administration spends state taxpayer funds on quantum computing to gain federal dollars.
“I think what we did is the right thing. We made our own investment, but it’s a kind of matching investment, so that the federal government understands we’re not just raising our hand and saying, ‘Great, toss some money this way.’ We’re actually making the commitment,” Pritzker said. “We have the institutions that are appropriate to carry that research forward. We’re a good bet, because you know we’re a long-term investor.”
In December, Pritzker and IBM officials announced the National Quantum Algorithm Center featuring IBM’s next generation modular quantum computer. The project includes the Illinois Department of Commerce and Economic Opportunity’s $25 million grant to deploy an IBM Quantum System Two at the Illinois Quantum and Microelectronics Park on Chicago’s Southeast Side.
According to the company’s annual report, IBM generated $62.8 billion in revenue and $12.7 billion in free cash flow in 2024.
The quantum park development on a former U.S. Steel site will take $700 million, including tax incentives, from state taxpayers and $280 million from federal taxpayers via DARPA, the Defense Advanced Research Projects Agency.
PsiQuantum was selected to anchor the site. The company said in a statement that the package of incentives from Illinois, Cook County and Chicago is worth more than $500 million over 30 years.
PsiQuantum’s estimated valuation is $3.15 billion.
Krishna was asked in Austin Tuesday if federally-funded research and development was still happening with the Trump administration’s focus on cutting wasteful spending in Washington.
“Absolutely. I always say, you know, just chill. There’s a lot of ups and downs, but I think federally funded [research and development] is still very much a thing,” Krishna said.
LIST: THE EXECUTIVE ORDERS, ACTIONS, AND PROCLAMATIONS TRUMP HAS MADE AS PRESIDENT
Krishna mentioned that he is a graduate of the University of Illinois Urbana-Champaign.
“As I was listening to Arvind, I have to compliment IBM, because they bring the best talent in the world,” Pritzker said.