Intel Agrees to Buy Quantum Software Firm Classiq, Reportedly for $2.3 Billion
By Sophie Shulman · · TexaHub · Quantum, Regional Tech Ecosystems
Intel signed a definitive agreement on October 26 to acquire Israeli quantum software company Classiq. Calcalist reported the price at $2.3 billion in cash and shares; Intel did not disclose terms.
The Agreement
Intel said on October 26 that it had entered into a definitive agreement to acquire Classiq, a Tel Aviv-based developer of quantum computing software. The deal is expected to close in the first half of 2027, subject to regulatory approvals and other customary conditions, and the two companies will operate as separate, independent businesses until then. [1]
Intel did not disclose financial terms. Israeli business daily Calcalist reported that Intel is paying $2.3 billion in a combination of cash and shares, describing it as the largest acquisition of a quantum computing company to date and Intel's largest significant Israeli acquisition since it bought Moovit for about $1 billion in 2020. [2]
Full-Stack Plan
Intel said it would combine Classiq's synthesis platform, which automates quantum circuit design, with its own silicon spin-qubit manufacturing and existing quantum software to build a full-stack quantum computing platform. The company said the deal would let it add quantum processing units to a portfolio that already includes CPUs, GPUs and ASICs. [1] [3]
Intel, which has worked on quantum computing since 2015, said it is the only company it knows of that can produce qubit chips and complex cryogenic control electronics at scale using conventional semiconductor processes. It said it would keep supporting Classiq's existing integrations with other hardware platforms and keep the software hardware-agnostic. [1] [3]
"Joining forces with Classiq transforms Intel's Quantum Computing Group into a full-stack quantum computing business," Intel chief executive Lip-Bu Tan said. Classiq co-founder and chief executive Nir Minerbi said the two companies "can help unlock the benefits of quantum computing and accelerate its adoption sooner." [3]
Classiq and Its Shareholders
Classiq was founded in 2020, employs about 150 people and has raised about $200 million, according to Calcalist. Its customers include BMW, Rolls-Royce, HSBC and Citi, its annual revenue is below $100 million, and it had been considering a US listing through a SPAC merger before the Intel deal. Its 2025 funding round valued it at about $600 million to $700 million. [2]
Calcalist reported that employees own about 10% of the company, worth roughly $230 million at the deal price, and that Intel has set aside more than $100 million in additional retention grants. Major investors include Entrée Capital, Team8 Capital and insurer Phoenix. Lip-Bu Tan is also a personal investor in Classiq from before he became Intel's chief executive; sources close to Classiq told the paper he did not take part in the negotiations. [2]
Sources
[1] Intel to Acquire Classiq to Accelerate Scalable Quantum Computing — Intel Newsroom
[2] Intel to acquire Israeli quantum startup Classiq for $2.3 billion in record deal — Calcalist / Ynet News
[3] Intel to Acquire Classiq to Create a Full-stack Quantum Computing Platform — The Quantum Insider