Intel Buys Israeli Quantum Software Startup Classiq for $2.3 Billion
Translated & summarized from NEWSru Israel by baba
Intel is acquiring Israeli quantum computing software startup Classiq for an estimated $2.3 billion, the largest deal in the quantum computing sector. This strategic move aims to establish Intel in the emerging quantum market. Classiq, founded in 2020, develops a platform for creating quantum algorithms and has seen significant revenue growth. The acquisition is Intel's second-largest in Israel and its first under current CEO Lip-Bu Tan.
The story in 6 lines · by baba
- Intel is acquiring Israeli quantum software startup Classiq for an estimated $2.3 billion.
- The deal is the largest acquisition in the global quantum computing industry to date.
- Classiq's platform allows development of quantum algorithms without specialized expertise.
- Intel's acquisition aims to secure a position in the emerging quantum computing market.
- Classiq's revenue grew more than fivefold in the past year.
- This is Intel's second-largest acquisition in Israel, after Mobileye.
Intel has announced its acquisition of Israeli company Classiq, a developer of quantum computing software. While the exact deal value remains undisclosed, sources close to the companies estimate it at approximately $2.3 billion, making it the largest acquisition in the global quantum computing industry. The payment structure, involving cash and stock, will be finalized upon closing.
This acquisition marks Intel's first significant purchase in about four years and its first under CEO Lip-Bu Tan, who is also a minority shareholder in Classiq. For Intel in Israel, this is the second-largest acquisition, following its $15.3 billion purchase of Mobileye in 2017. The move signifies Intel's strategic push into the quantum computing market, aiming to avoid missing out on this emerging technology as it did with mobile and AI revolutions.
Classiq, founded in 2020, offers a platform enabling organizations without quantum physics expertise to develop quantum algorithms and applications compatible with any quantum computer. The company's revenue has grown over fivefold in the past year, reaching several million dollars. Classiq employs 150 people globally and had previously raised around $200 million, including a $110 million round last year at a $400 million valuation.
Recent funding rounds saw Classiq raise an additional $30 million at a $600 million valuation from investors including AMD, Qualcomm, and IonQ. The company had been preparing for an IPO on Wall Street and approached Intel as a potential anchor investor, leading to acquisition talks.
Major shareholders in Classiq stand to gain significantly. Entrée Capital, the largest shareholder with approximately 15%, is expected to receive around $340 million. Team8 is projected to receive about $200 million, and Phoenix Insurance Company around $160 million. Co-founders the Technical Director and Amir the Technical Director, each holding about 4.5% of the shares, are each expected to receive around $100 million, while Nir Minervi is set to receive approximately $77 million.
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