Rigetti signs definitive CHIPS agreement for up to $100m equity funding

Rigetti Computing has signed a definitive agreement with the U.S. Department of Commerce for an award of up to $100 million under the CHIPS Research and Development Office Broad Agency Announcement. In connection with the agreement, Rigetti issued approximately 7.7 million shares of common stock to the Department, representing a minority, non-controlling equity interest. The entire $100 million will be allocated to these shares and recorded as additional paid-in capital as cash is drawn down. Funds become available on a monthly basis as Rigetti incurs eligible project costs, which are capitalized or expensed under normal accounting treatment.

Management characterizes the arrangement as effectively a $100 million equity offering with stipulations on the use of proceeds. The award is designed to accelerate research and development in areas important to scaling superconducting quantum computing. Rigetti had not drawn any of the $100 million as of September 2026 because the program was just beginning and related costs had not yet been incurred.

During the third quarter of 2026, Rigetti’s Cepheus-1-108Q system achieved 99.5% median two-qubit gate fidelity on its 108-qubit architecture, meeting a key system milestone. The company reports that this performance further validates its chiplet-based quantum processing unit design, which in Cepheus-1-108Q is built from 12 interconnected 9-qubit chiplets. The system also achieved 99.6% median two-qubit fidelity on an 80-qubit sublattice and 99.7% on a 50-qubit sublattice.

Cepheus-1-108Q operates at approximately 99.9% median single-qubit gate fidelity and gate speeds of about 60 nanoseconds. Rigetti notes that its superconducting systems typically achieve gate speeds of 50 to 70 nanoseconds. The 99.5% figure is described as a median value, meaning that half of the qubits achieve fidelities above that level and half below, reflecting the statistical distribution of performance across the system.

Building on Cepheus-1-108Q, Rigetti’s next major system objective is a 300-plus-qubit system targeted for mid-2028. The company aims for approximately 99.7% median two-qubit gate fidelity and gate speeds below 60 nanoseconds in that system, with a larger qubit count per chiplet, faster readout and expanded cryogenic capacity. The 300-qubit system is described as an intermediate milestone that is intended to demonstrate continued scalability of the chiplet strategy with strong fidelity and speed.

Rigetti continues to target a path toward systems with approximately 1,000 qubits, about 99.9% two-qubit gate fidelity and gate speeds below 50 nanoseconds within roughly three years. The company plans to increase the density of qubits in a single cryostat rather than networking multiple fridges together. Management expects that combining this scale, fidelity and speed with error correction could provide a platform for demonstrating quantum advantage.

The CHIPS award supports three research and development programs focused on miniaturized readout electronics, expanded cryogenic capacity through a new cryostat architecture and fabrication capabilities for high-connectivity chip architectures. Rigetti intends to execute these Commerce milestones using a partnership model, including collaborations with companies working on miniaturized readout electronics and with one of its dilution refrigerator suppliers on the new cryostat design. The new cryostat architecture is intended to enable systems with more than 10,000 qubits.

On the financial side, cash received under the award will be credited to additional paid-in capital as costs are incurred, while project expenses will flow through research and development or capital expenditures. If retention of the funding is not considered probable at any point, Rigetti would recognize a liability until any prepayment contingencies are resolved. The company states that its capital allocation will prioritize technical programs and infrastructure that most directly advance scalable superconducting quantum computing.

For the three months ended September 30, 2026, Rigetti generated total revenue of $1.4 million. Revenue for the first nine months of 2026 was $10.9 million, compared with $5.2 million in the same period of 2025, an increase of about 110%. The company reported an operating loss of $33.2 million for the quarter. For full-year 2026, Rigetti expects revenue of approximately $20 million, assuming customer acceptance and related revenue recognition for its C-DAC contract in the fourth quarter.

Rigetti ended the third quarter with $497.1 million in cash, cash equivalents and available-for-sale investments, and it reported no debt. Management highlights this balance sheet, together with the up to $100 million CHIPS award, as providing substantial resources and flexibility to pursue its roadmap, continue investing in technology development and support its systems delivery capabilities.