Intel Acquires Israeli Quantum Firm Classiq for $2.2 Billion
Translated & summarized from Globes by baba
Intel has acquired Israeli quantum computing firm Classiq for $2.2 billion, the largest deal in the sector's history. Classiq's operating system allows complex algorithms to run on diverse quantum hardware, attracting major clients like BMW and HSBC. The acquisition positions Israel as a key player in global quantum development and is expected to yield significant returns for early investors, including Entree Capital and Team8.
The story in 5 lines · by baba
- Intel acquired Israeli quantum firm Classiq for $2.2 billion, the largest deal in quantum computing history.
- Classiq's operating system enables complex algorithms on various quantum computer types, attracting major clients.
- The acquisition marks Intel's significant bet on quantum computing and its operating system market.
- Early investors like Entree Capital and Team8 are set to receive substantial returns from the deal.
- The acquisition solidifies Israel's position as a central hub for global quantum computing development.
Intel has acquired Classiq, an Israeli company specializing in quantum computing operating systems, for $2.2 billion. This landmark deal, originating from Classiq's Tel Aviv office, marks the largest acquisition ever in the quantum computing sector and Intel's most significant purchase in Israel since its $15.3 billion acquisition of Mobileye in 2017. The acquisition signifies Intel's strategic bet on the burgeoning quantum computing market and its entry into the operating system domain, drawing parallels to Google's acquisition of Android.
Classiq, founded by CEO Nir Minervi and CTO Yehuda Naveh and CPO Amir Naveh, will become Intel's global quantum development hub. The company's operating system is designed to run complex algorithms on various types of quantum computers, regardless of the underlying hardware technology. This approach allows software developers to design, develop, and test quantum software, similar to how Microsoft's Windows operates for classical computers. Major corporations like BMW, HSBC, and Intesa Sanpaolo have utilized Classiq's platform for applications ranging from vehicle simulation to fraud detection and financial modeling.
Despite Intel's history of mixed success with acquisitions in Israel, including the failure of Habana Labs and Granulate, the company is optimistic under current CEO Lip-Bu Tan. Intel's stock has seen a significant rise of approximately 140% this year, nearing a market capitalization of half a trillion dollars. The acquisition of Classiq is expected to bolster Intel's position in the competitive quantum landscape, where it faces rivals like IBM, which offers its own quantum operating system, Qiskit.
The deal's major beneficiaries include venture capital firms Entree Capital, co-founded by Avi Eyal and Ran Achituv, which will see a return of $330 million for its approximately 15% stake, and Team8, led by Sarit Firon, which is set to gain around $180 million for its 8% share. The Phoenix Group and Clal Insurance are also significant stakeholders, with The Phoenix expected to receive over $150 million. Founders Yehuda and Amir Naveh hold about 9% of the company, while CEO Nir Minervi owns approximately 3.5%. Employees holding options are also anticipated to receive substantial rewards.
Classiq's acquisition surpasses previous major quantum deals, including Oxford Ionics' sale to IonQ for $1 billion and Quantum Circuits' sale to D-Wave for $550 million. This transaction highlights Israel's growing importance as a global hub for quantum computing development. The field is rapidly evolving, with major tech players like Google and IBM actively developing their own quantum chips, while Nvidia focuses on software and bridging to quantum hardware.
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