N12Tech11:48

Intel Acquires Israeli Quantum Startup Classiq for $2.2 Billion

By אסף גלעד

Translated & summarized from N12 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's operating system technology will bolster Intel's quantum development efforts, with the startup becoming Intel's global quantum hub. The acquisition is expected to provide significant returns for investors and founders, highlighting Israel's growing importance in the global quantum technology race.

The story in 5 lines · by baba

Intel acquired Israeli quantum startup Classiq for $2.2 billion, the largest deal in quantum computing history.
Classiq's quantum operating system will become the core of Intel's global quantum development.
The acquisition is expected to yield hundreds of millions of dollars for investors like Entree Capital and Team8.
Classiq serves major clients including BMW and HSBC with its quantum software platform.
The deal underscores Israel's significant role in the global quantum technology sector.

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.

Classiq, founded by CEO Nir Minervi and brothers Yehuda and Amir Neve, will become Intel's global quantum development center. The acquisition is seen as Intel's strategic move into the quantum computing market, similar to Google's acquisition of Android, aiming to control hardware aspects through software. The company, previously recognized by Globes as a promising startup, serves hundreds of academic clients and dozens of companies, including BMW and HSBC, which have used its platform for simulations and fraud detection applications.

The deal is expected to yield significant returns for investors, including Entree Capital, which holds approximately 15% of Classiq's shares, and Team8, with around 8%. The Phoenix Group is also a major shareholder, with about 7%. The founders, Yehuda and Amir Neve, collectively own about 9% of the company, while CEO Nir Minervi holds approximately 3.5%. Employees holding options are also anticipated to receive substantial benefits.

Despite Intel's history of mixed success with acquisitions in Israel, including the $2 billion purchase of Habana Labs and the $15 billion acquisition of Mobileye, the company's leadership under CEO Li Bo-Tan is optimistic about this venture. Intel's stock has seen a significant rise, nearing a half-trillion-dollar valuation, fueled by renewed manufacturing contracts and government deals.

Classiq's acquisition surpasses previous quantum computing deals, such as Oxford Ionics' sale to IonQ for $1 billion and Quantum Circuits' sale to D-Wave for $550 million. The quantum computing landscape includes other major players like IBM and Google, who are developing their own quantum chips, and NVIDIA, which offers a quantum operating system as a bridge to its standard processors or other quantum computers. Other Israeli companies like Quantum Machines and Qedma are also making strides in the quantum control systems and error correction fields, respectively.