IonQ, Inc. (NYSE: IONQ) received $7.5 million in Phase 2 follow-on funding from the Air Force Research Laboratory (AFRL), the company announced Tuesday. The award expands the first-generation quantum network IonQ delivered in Rome, New York. The new work adds optical, hardware and software layers so the network can run in real-world conditions, not just in a controlled lab.

Key Points

• AFRL awarded IonQ $7.5 million in Phase 2 funding to expand its quantum network in Rome, New York.
• The award falls within the $21.1 million collaboration announced in January 2025. It is not new money on top of that total.
• Phase 2 adds free-space optical links, quantum frequency converters, automated control software and upgraded network hardware.
• The goal is to connect different types of quantum hardware over standard telecom infrastructure and open air.
• The contract builds on IonQ’s April 2026 photonic interconnect milestone with AFRL.

From Testbed to Working Network

Phase 1 built the physical foundation of the Rome network. Phase 2 takes the next step: it lets AFRL link different kinds of quantum systems outside the lab. IonQ compares the work to the routers and fiber that let classical computers share data across the internet.

To get there, IonQ will deliver four sets of upgrades:

• Free-space optical links with automatic pointing, acquisition and tracking. These distribute entanglement over line-of-sight channels in the C-band.
• Two quantum frequency converter modules. These let different quantum and classical hardware work together over standard telecom wavelengths.
• Automated control software for self-tests, real-time monitoring, failure handling and automated results export.
• Upgraded hardware, including O-band-compatible network gear, better polarization controls and new quantum network interface cards.

Why the Award Matters for IonQ (IONQ)

The dollar amount is modest for a company of IonQ’s size, and it was already part of the 2025 deal. The bigger signal is that AFRL is moving IonQ to the next phase, which shows the Air Force wants to keep building on the network.

Jordan Shapiro, IonQ’s President of Quantum Platform, said advanced optics and automated software “close the gap between laboratory demonstration and field deployment.”

Free-space optics also opens a new frontier. Line-of-sight quantum links could eventually connect sites where laying fiber isn’t practical, such as forward defense locations, campuses or metro networks. In that sense, the contract supports IonQ’s broader full-stack strategy across computing, networking, sensing and security.

A Steady Drumbeat of Networking News

The award adds to a busy stretch for IonQ. Earlier this month, the company demonstrated a world-first quantum memory interconnect. It also agreed to a $1.3 billion deal for Elisity to push into quantum-era security. In September, IonQ partnered with SDT to bring quantum computing and networking to South Korea.

Investors can follow IonQ alongside its peers in the PRISM NextGen Tech & AI Index.

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COMTEX_1001821230/2927/2026-10-27T10:31:07