Intel Acquires Israeli Quantum Computing Startup Classiq for $2.3 Billion

Founded in 2020 and based in Tel Aviv, Classiq develops software that simplifies the programming and operation of quantum computers, allowing organizations to build quantum algorithms without specialized expertise. The company's platform operates across different hardware systems, serving major clients such as BMW, HSBC, Citibank, Rolls-Royce, and Deloitte. Following the acquisition, Classiq will become Intel's global quantum development hub.

The deal will yield substantial financial returns for Classiq's founders, employees, and investors. Founders Nir Minerbi, Amir Naveh, and Yehuda Naveh are expected to receive between $80 million and $100 million each. The company's 150 employees will share approximately $230 million for their 10% share pool, alongside over $100 million allocated by Intel in retention bonuses. Major venture capital backers, including Entree Capital, Team8, and Israeli institutional investors like The Phoenix Group, also anticipate significant payouts.

While the acquisition positions Intel in the emerging quantum computing market, it comes amid investor skepticism regarding the tech giant's historical track record with acquisitions. Over the past two decades, Intel has spent billions on Israeli acquisitions, such as Mobileye, Habana Labs, and Granulate, which critics argue failed to alter the company's trajectory or prevent it from missing key technological revolutions in mobile and AI.