MakoTech11:48

Intel Acquires Israeli Quantum Startup Classiq for $2.2 Billion

By אסף גלעד

Translated & summarized from Mako by baba

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Hebrew · 16 newsrooms covering

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Intel has acquired Israeli quantum computing startup Classiq for $2.2 billion, marking the largest deal in the quantum computing sector to date. Classiq develops operating systems for quantum computers, and its technology is used by hundreds of academic institutions and companies like BMW and HSBC. The acquisition is Intel's largest in Israel since Mobileye in 2017 and positions Israel as a key player in global quantum technology development.

The story in 6 lines · by baba

Intel acquired Israeli quantum startup Classiq for $2.2 billion, the largest deal in the quantum computing sector.
Classiq develops operating systems for quantum computers, enabling complex algorithms across various hardware types.
The acquisition is Intel's largest in Israel since Mobileye in 2017, signaling a major push into quantum computing.
Classiq's technology is used by hundreds of academic institutions and companies like BMW and HSBC.
The deal positions Israel as a significant hub for global quantum technology development.
Major venture capital funds and the company's founders are expected to be significant beneficiaries of the sale.

Intel Acquires Israeli Quantum Startup Classiq for $2.2 Billion — Editorial illustration generated by baba News, not a photograph of the event.

Intel has acquired Classiq, an Israeli startup specializing in quantum computing operating systems, for $2.2 billion. This landmark deal, the largest ever in the quantum computing sector, positions Israel as a significant hub for quantum technology development. Classiq's software allows complex algorithms to run on various types of quantum computers, making it a versatile platform for researchers and companies.

The acquisition marks Intel's significant entry into the quantum computing race, particularly in the operating system domain, drawing parallels to Google's acquisition of Android. Classiq, founded by CEO Nir Minervi and brothers Yehuda and Amir Neve, will become Intel's global quantum development center. The company's technology is already utilized by hundreds of academic institutions and dozens of corporations, including BMW and HSBC, for applications ranging from vehicle simulation to fraud detection.

Classiq, previously recognized as a promising startup, aims to be the "Microsoft of the quantum world." Its operating system is designed to be hardware-agnostic, supporting diverse quantum computing technologies. This flexibility is crucial in a field where the dominant hardware approach is still uncertain. The software enables developers to design, build, and test quantum programs, similar to how Microsoft Windows functions for classical computers.

This acquisition is Intel's largest in Israel since its $15.3 billion purchase of Mobileye in 2017. While Intel has a history of mixed success with acquisitions in Israel, the company's current leadership, under CEO Li Bo-Tan, is seen as bringing a renewed focus on economic recovery and business acumen. Intel's stock has seen a significant rise this year, nearing a market capitalization of half a trillion dollars.

The major beneficiaries of the Classiq sale include venture capital funds Entree Capital and Team8, as well as The Phoenix insurance group, with founders and employees also set to gain substantially. Classiq's acquisition surpasses previous significant quantum sector deals, highlighting the growing investment and competition among major tech players like Google and IBM in the quantum computing arena.