Israeli Quantum Computing Firm Classiq Acquired by Intel for $2.3 Billion

Classiq, an Israeli quantum computing software company, has been acquired by Intel for $2.3 billion. Co-founder and CEO Nir Minrabi revealed that the company had seriously considered going public via an IPO or SPAC before opting for the acquisition by the chip giant. Minrabi stated that Intel's acquisition signifies a major strategic move, emphasizing that Intel "isn't making such a move to keep us small and cute." He also confirmed that Classiq's quantum computing operations will be led from Israel, with Intel viewing the company as the strategic and business lead for all its quantum computing endeavors, including software, hardware, business, and strategy.

Classiq, founded six years ago, develops operating systems and software for quantum computers, a field Minrabi describes as a "new computing world" and a revolution discussed since the 1980s. He explained that while traditional computers share the same DNA, quantum computers are a "completely different type of computer that promises to change the world." The shift in recent years, he noted, has moved from questioning "if it will happen" to "when it will happen," transforming the challenge from scientific to engineering and technological.

Minrabi highlighted that Classiq's software is designed to work with any type of quantum computer, serving the entire industry, not just Intel's machines. He drew parallels to Microsoft's DOS operating system, which enabled the use of early computers, and NVIDIA's CUDA platform, which unlocked the potential of graphics processing units. Intel's acquisition is seen as a move to provide the crucial software layer that was missing for its quantum hardware. Major clients of Classiq include BMW, Lufthansa, AT&T, Comcast, HSBC, Bank of Israel, Deloitte Israel, ICL, Ichilov Hospital, and defense industries.

Minrabi described the connection with Intel as natural, noting the company's iconic status in computing. He mentioned that Intel has its own quantum computer and significant hardware assets, but lacked the software to enable users. He also revealed that Classiq's journey began with Intel's Ignite accelerator program. Looking ahead, Minrabi anticipates that Intel's quantum computing business, bolstered by Classiq, will become a prominent name in the field. He also confirmed that Intel's quantum computing division will double its workforce, with Israel remaining central to its operations. While acknowledging that quantum computing does not yet offer widespread commercial value, Minrabi stressed that organizations are paying for Classiq's services to prepare for the quantum era.