Intel Acquires Israeli Quantum Startup Classiq in Landmark Deal
Translated & summarized from Walla by baba
Intel has acquired the Israeli quantum computing startup Classiq in a landmark deal, establishing Classiq as Intel's global quantum development hub. The acquisition marks the largest in the quantum computing sector's history and is expected to significantly boost Israel's standing in quantum technology. The deal will provide substantial financial returns to Classiq's founders, employees, and investors, including Entree Capital, Team8, and The Phoenix Group.
The story in 5 lines · by baba
- Intel acquired Israeli quantum startup Classiq in a landmark deal, its largest quantum sector acquisition ever.
- Classiq will become Intel's global quantum development center, enhancing Israel's role in the field.
- The deal is expected to yield tens of millions for founders and hundreds of millions for investors.
- Classiq's 150 employees will share approximately $230 million, with over $100 million in retention bonuses.
- Major investors like Entree Capital, Team8, and The Phoenix Group anticipate significant returns.
Tech giant Intel has acquired Israeli startup Classiq, a move described as the largest acquisition in the history of the global quantum computing sector and Intel's most significant exit in Israel in years. Classiq, founded in 2020 and based in Tel Aviv, will become Intel's global quantum development center.
Classiq has developed an operating system for quantum computers designed to run complex algorithms, bridging the gap between hardware and end-users. Industry insiders compare its product to "Microsoft" or "Windows" for the quantum world, with IBM's "Qiskit" system being its main competitor. The company serves clients in academia and major commercial sectors, including banking and automotive, with notable customers like BMW, HSBC, Citibank, Rolls-Royce, and Deloitte.
The acquisition is expected to yield substantial returns for Classiq's founders and investors. CEO Nir Minervi, Chief Product Officer Amir Naveh, and Chief Technology Officer Prof. Yehuda Naveh are each projected to earn tens of millions of dollars. The company's 150 employees, who collectively hold about 10% of the shares, will share approximately $230 million, with Intel allocating over $100 million in retention bonuses. Among the investors, Entree Capital is set to see the largest return, over $300 million, followed by Team8 with over $180 million, and The Phoenix Group with over $150 million.
Intel's legal representation in Israel was provided by attorneys Barak Platt, Josh Hauser, and Ofir Levy from the law firm Arnon, Tadmor-Levy. Notably, Intel's current CEO, Lip-Bu Tan, was an early private investor in Classiq before assuming his leadership role at Intel.
This historic deal positions Israel at the forefront of global quantum technology and is anticipated to attract increased international investor interest in the field.
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