Intel Acquires Israeli Quantum Software Firm Classiq for $2.2 Billion

Intel has signed a binding agreement to acquire Classiq, an Israeli software company developing an operating system for quantum computers, for approximately $2.2 to $2.3 billion in a mix of cash and Intel stock. The deal, expected to close in the first half of 2027 pending regulatory approval, marks the largest acquisition of a quantum company globally and the first by a major US tech giant. Classiq's platform allows developers to define quantum computations, which the system then automatically translates into optimized code for specific quantum hardware, enabling software portability across different machines. This acquisition aims to complement Intel's existing quantum computing efforts, which began in 2015 with the development of silicon-based qubits.

Upon completion, Classiq will become Intel's global development center for quantum computing. Intel plans to offer a complete quantum computing platform, from hardware to software, integrating quantum processors alongside its existing CPUs, GPUs, and accelerators. Intel will continue to support the integration of Classiq's platform with hardware from other manufacturers, a crucial point for existing customers using competitor machines. Classiq's notable clients include BMW, Rolls-Royce, HSBC, Citi, Deloitte, Toshiba, and Mizuho, along with over 600 academic institutions.

Classiq, founded in 2020, has raised approximately $200 million to date. Its valuation in a May 2025 funding round was estimated between $600 to $700 million. The current acquisition price represents a more than threefold increase in valuation within about 18 months. Major beneficiaries include Entrée Capital, which led Classiq's pre-seed round and holds about 15% of the shares, valued at over $300 million. Team8 and The Phoenix insurance company are also significant stakeholders. The founders, Yehuda and Amir Naveh, along with CEO Nir Minervi, are expected to receive between $80 to $100 million each. Approximately 150 Classiq employees, holding 10-20% of the company's stock options, will also benefit, with Intel allocating over $100 million for retention bonuses.

Intel CEO Lip-Bu Tan, who personally invested in Classiq in 2022, recused himself from acquisition discussions due to potential conflicts of interest, following earlier concerns about his private investments. The acquisition is also subject to Israeli tax implications, with the state expected to collect taxes from the company, founders, employees, and investors. This is Intel's second-largest acquisition in Israel, following Mobileye for $15.3 billion in 2017, and also includes previous acquisitions like Habana Labs and Moovit. While some past acquisitions faced integration challenges, Classiq's leadership believes the current Intel under Tan operates differently.

Globally, the quantum computing sector has seen 17 acquisitions since 2022, with IonQ being the most active acquirer. Before this deal, no major US tech company had acquired a quantum firm. Classiq's acquisition price places it among the top five most valuable quantum companies worldwide, despite its annual revenues being in the tens of millions of dollars. Israel is considered a leading country in quantum computing, and this deal is expected to attract further investment, similar to the impact of Mobileye's acquisition on the autonomous vehicle sector.