Intel Corporation has agreed to acquire Israeli quantum software startup Classiq Technologies Ltd. for $2.2 billion to $2.3 billion in cash and stock. The acquisition, expected to close in the first half of 2027, marks the largest transaction in quantum computing history. Classiq develops a hardware-agnostic operating system used by clients including BMW AG and HSBC. Intel plans to combine Classiq’s software with its silicon spin-qubit manufacturing to establish a full-stack quantum business.
Intel acquisition of Classiq
- ▪Intel Corporation's purchase of Classiq Technologies Ltd. is its first acquisition of an Israeli technology company since purchasing Granulate in 2022
- ▪Classiq Technologies Ltd. will serve as Intel Corporation's global development center for quantum computing following the completion of its acquisition of Classiq
- ▪Intel Corporation's acquisition of Classiq Technologies Ltd. marks the largest acquisition in the quantum computing industry to date, surpassing IonQ's 2025 purchase of Oxford Ionics for $1 billion
- ▪The acquisition of Classiq Technologies Ltd. is Intel Corporation's second-largest transaction in its history, following its $15.3 billion purchase of Mobileye in 2017
Classiq quantum software platform
- ▪Italian bank Intesa Sanpaolo used Classiq Technologies Ltd.'s software platform to build an application for pricing financial options over reduced timeframes
- ▪Financial institution HSBC Holdings Plc utilized Classiq Technologies Ltd.'s platform to build a quantum algorithm for corporate fraud detection
- ▪Classiq Technologies Ltd. software is designed to execute on specialized quantum algorithm processors developed by Quantum Machines Ltd.
- ▪Classiq Technologies Ltd.'s client base includes telecommunications firm AT&T Inc., professional services firm Deloitte, and technology company Toshiba Corporation
- ▪Classiq Technologies Ltd. develops a hardware-agnostic operating system designed to enable developers to design, test, and run software across various quantum computing platforms
- ▪Automobile manufacturer BMW AG used Classiq Technologies Ltd.'s software platform to develop quantum simulations for vehicle aerodynamics
Quantum computing industry context
- ▪Quantum computing startup Quantinuum reached a peak public market valuation of $15 billion before declining 35 percent to approximately $9.5 billion
- ▪Israel is home to one of the world's five largest quantum computing sectors measured by company density and private investment volume
- ▪IonQ Inc., which went public through a special-purpose acquisition company merger in 2021, holds a market capitalization of approximately $13 billion
- ▪There are currently 117 quantum computers operational worldwide, keeping the hardware expensive and largely inaccessible for broad commercial use
- ▪IBM Corporation's Qiskit platform serves as a primary competitor to Classiq Technologies Ltd.'s operating system in the quantum software market
Deal valuation structure
- ▪Intel Corporation allocated more than $100 million in retention grants to encourage Classiq Technologies Ltd. employees to remain after its acquisition of Classiq
- ▪CTech reported the value of Intel Corporation's acquisition of Classiq Technologies Ltd. at $2.3 billion in cash and stock, while SiliconAngle reported $2.2 billion
- ▪Intel Corporation Chief Executive Officer Lip-Bu Tan personally invested in Classiq Technologies Ltd.'s 2022 Series B and 2025 Series C funding rounds before recusing himself from Intel Corporation's discussions to acquire Classiq Technologies Ltd.
- ▪Classiq Technologies Ltd. previously raised over $200 million in private funding, including a $110 million Series C round in May 2025 that valued the startup between $600 million and $700 million
Founder employee investor returns
- ▪Venture capital firm Team8 Capital holds a 9 percent equity stake in Classiq Technologies Ltd., while Israeli financial institution The Phoenix holds 7.5 percent
- ▪Early-stage venture firm Entrée Capital, Classiq Technologies Ltd.'s largest shareholder, stands to return over $300 million from its initial pre-seed investment
- ▪Classiq Technologies Ltd. employees collectively hold 10 percent of company equity, valued at approximately $230 million under Intel Corporation's $2.3 billion acquisition price
- ▪Classiq Technologies Ltd. co-founders Nir Minerbi and Amir Naveh are graduates of the Israel Defense Forces' Talpiot training program
Intel quantum computing strategy
- ▪Intel Corporation plans to combine Classiq Technologies Ltd.'s software platform with its existing silicon spin-qubit manufacturing process
- ▪Intel Corporation likened Classiq Technologies Ltd.'s software abstraction layer to the historical role of electronic design automation in semiconductor design
- ▪Intel Corporation has conducted research and development on silicon spin-qubit quantum technology for over a decade
- ▪Intel Corporation Chief Executive Officer Lip-Bu Tan stated that acquiring Classiq Technologies Ltd. transforms Intel Corporation's Quantum Computing Group into a full-stack quantum business
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