Full coverage· Tech· Updated 23:01

Intel Buys Israeli Quantum Software Startup Classiq for $2.3 Billion

Intel has signed a binding agreement to acquire the Israeli quantum computing software startup Classiq for an estimated $2.2 billion to $2.3 billion in a mix of cash and stock. The deal, which is expected to close in the first half of 2027 pending regulatory approval, represents the largest acquisition in the history of the global quantum computing industry. It is also Intel's second-largest acquisition in Israel, following its $15.3 billion purchase of Mobileye in 2017.

8 newsrooms · 3 languages · since 22:05

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Intel Buys Israeli Quantum Software Startup Classiq for $2.3 Billion — Illustration by baba

What happened

01Intel is acquiring Israeli quantum software startup Classiq for an estimated $2.2 billion to $2.3 billion in cash and stock.
02The transaction is the largest acquisition in the history of the global quantum computing sector.
03The deal is Intel's second-largest acquisition in Israel, surpassed only by its $15.3 billion purchase of Mobileye in 2017.
04Classiq will become Intel's global development hub for quantum computing after the deal closes in the first half of 2027.
05Each of Classiq's three founders is expected to receive between $77 million and $100 million from the acquisition.
06Classiq's platform allows developers to design quantum algorithms that run across different hardware systems without specialized physics expertise.
07The acquisition is Intel's first major purchase under CEO Lip-Bu Tan, who is also a minority shareholder in Classiq.
08Early venture capital investors including Entree Capital and Team8 are set to receive substantial financial returns.

Founded in 2020 by CEO Nir Minervi, CTO Dr. Yehuda Naveh, and CPO Amir Naveh, Classiq develops an operating system and software platform that simplifies the creation of quantum algorithms, allowing developers to write code that can run on various types of quantum hardware. The company employs between 130 and 150 people, who are expected to benefit from stock realization and retention incentives. Classiq's three founders are projected to receive between $77 million and $100 million each from the sale, while early investors such as Entree Capital and Team8 will see substantial returns.

Upon completion of the transaction, Classiq will become Intel's global development center for quantum computing. The acquisition is Intel's first major purchase in about four years and the first under CEO Lip-Bu Tan, who is also a minority shareholder in Classiq. The strategic move is seen as an effort by Intel to secure a leading position in the emerging quantum computing market and avoid repeating past failures, where the chipmaker missed major technological shifts in mobile, autonomous vehicles, and artificial intelligence.

Summarized by baba from the reports of 8 newsrooms. Updated 23:17