Intel to Buy Israeli Quantum Firm Classiq for $2.3B

WHO:

Bloomberg - Intel Corp. agreed to acquire Classiq Technologies Ltd., an Israeli quantum-computing startup.

CTech - Classiq was founded by Nir Minerbi, Amir Naveh and his father, Prof. Yehuda Naveh. Minerbi is CEO, Amir Naveh is CPO, and Yehuda Naveh is CTO.

CTech - Classiq employs around 150 people; Bloomberg reports about 130 employees.

CTech - Classiq’s customers include BMW, Rolls-Royce, HSBC, Deloitte, Toshiba and Citi, across banking, automotive and pharmaceuticals.

CTech - IBM is Classiq’s main competitor. Lip-Bu Tan, Intel’s CEO and a Classiq investor, recused himself from acquisition discussions, according to sources close to Classiq.

CTech - Investors include Entrée Capital, Team8 Capital, The Phoenix and NightDragon, led by Dave DeWalt. Team8 Capital holds 9%; The Phoenix holds 7.5%.

WHAT:

CTech - Intel is acquiring Classiq for $2.3 billion in cash and stock. CTech describes it as the largest quantum-company acquisition to date; the previous record was IonQ’s $1 billion acquisition of Oxford Ionics.

CTech - Classiq develops hardware-agnostic software that functions as an operating system for quantum computers, connecting complex hardware with users. Its ambition is to become the “Windows” of quantum computing.

CTech - Classiq has raised about $200 million. Its $110 million funding round valued it at an estimated $600 million to $700 million. The acquisition price is more than $2 billion.

CTech - Employees collectively own 10% of Classiq, worth $230 million at the acquisition price; Intel has allocated more than $100 million in retention grants. Each founder is expected to receive $80 million to $100 million.

CTech - Entrée Capital is expected to receive more than $300 million on an investment of a few million dollars. Classiq generates annual revenue in the tens of millions of dollars, below a $100 million annual run rate.

CTech - There are 117 quantum computers worldwide; the article says they are prohibitively expensive and largely inaccessible. Classiq’s market-share position relative to IBM depends on how the market is measured.

CTech - The deal is expected to generate Israeli tax revenue; some proceeds will not be received immediately because consideration includes Intel stock.

CTech - Intel previously paid about $1 billion for Moovit and $2 billion for Habana Labs; it acquired Israeli company Granulate in 2022. Intel’s acquisition of Mobileye helped spur investment in Israeli autonomous-driving companies.

CTech - Israel is described as one of the five leading countries in quantum computing by company numbers and private investment.

WHERE:

Bloomberg - Classiq is based in Tel Aviv, Israel.

CTech - Classiq is incorporated in Israel.

WHY:

Bloomberg - Intel’s acquisition is part of its effort to capitalize on quantum computing, a nascent field seeking commercial applications.

CTech - The acquisition could attract investor attention to Israel’s quantum industry; the field has not yet achieved widespread practical commercial use or a “ChatGPT moment.”

HOW:

CTech - The acquisition consideration consists of cash and Intel stock.

CTech - Classiq had explored a possible Wall Street IPO. The article says most recent quantum-company listings used SPAC mergers and had weak share-price performance; Quantinuum, valued at about $9.5 billion, had fallen 35% from its peak, while IonQ’s market capitalization was around $13 billion.

(UPDATED October 27, 2026 02:16 UTC)

Intel has agreed to acquire Tel Aviv-based quantum-computing startup Classiq for $2.3 billion in cash and stock, in what is described as the largest acquisition yet of a quantum company. Classiq makes software that works across different quantum-computing hardware, and its customers include BMW, Rolls-Royce, HSBC and Citi; the deal could help Intel pursue commercial uses for the still-emerging technology. The acquisition is expected to bring substantial returns to Classiq’s investors and employees, while potentially drawing more investor attention to Israel’s quantum industry.