CalcalistTech11:35

Intel Acquires Israeli Quantum Startup Classiq for $2.3 Billion

By סופי שולמן

Translated & summarized from Calcalist by baba

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Intel is acquiring Israeli quantum computing startup Classiq for $2.3 billion, the largest deal in the quantum sector to date. Classiq develops software to enable communication with quantum computers, addressing a key industry challenge. The acquisition is expected to enhance Israel's standing in quantum technology and integrate Classiq's 140 employees into Intel's quantum division, aiming to turn R&D into a business.

The story in 5 lines · by baba

Intel acquired Israeli quantum startup Classiq for $2.3 billion, the largest deal in the quantum sector.
Classiq provides software to enable users to communicate with quantum computers.
The acquisition aims to integrate Classiq's 140 employees into Intel's quantum efforts.
Nir Minervi co-founded Classiq six years ago with Amir Naveh and Yehuda Naveh.
The deal is expected to boost Israel's position in the global quantum technology landscape.

Intel Acquires Israeli Quantum Startup Classiq for $2.3 Billion — Editorial illustration generated by baba News, not a photograph of the event.

Intel has announced its acquisition of the Israeli quantum computing startup Classiq for $2.3 billion in cash and stock, marking the largest deal to date in the global quantum sector. Classiq, founded six years ago by Nir Minervi, Amir Naveh, and Yehuda Naveh, developed software to bridge the gap between quantum hardware and end-users, addressing what Minervi described as a "nearly embarrassing problem" of no one knowing how to communicate with quantum computers.

Minervi, who serves as Classiq's CEO, explained that the company's focus on building a customer base, rather than solely relying on the "deep tech" label, was a key factor in Intel's interest. He noted that institutions like Ichilov Hospital, the Bank of Israel, and the Israel National Cyber Directorate were among Classiq's users. The acquisition is expected to further solidify Israel's position as a leading hub for quantum technology, building on its existing strength in quantum companies and private investment.

Intel's CTO, Lip-Bu Tan, compared Classiq's software to NVIDIA's CUDA or Microsoft's DOS, highlighting its potential to become an operating system-like bridge for quantum computing. Minervi expressed confidence in the partnership, emphasizing Intel's commitment to allowing Classiq to operate as a startup within the larger corporation, maintaining its Israeli identity and agility. Intel currently has about 70 employees in quantum computing, and the addition of Classiq's 140 employees is seen as a significant boost, transforming Intel's quantum efforts from R&D to a business venture.

Classiq considered other options, including a SPAC and a traditional IPO, but ultimately chose the acquisition by Intel. Minervi acknowledged the recent volatility in the quantum stock market but believes Intel is well-positioned to capitalize on the emerging quantum computing revolution. He also mentioned that while the financial support from the Israeli Innovation Authority was modest, its strategic importance was significant, helping to attract substantial private investment.