Intel to acquire Classiq for $2.3 billion

Classiq, a provider of quantum computing software, will be acquired by Intel for $2.3 billion in cash and stock, according to Calcalist. Intel said it signed a definitive agreement to acquire Classiq and expects the transaction to close in the first half of 2027, subject to regulatory approvals; the companies will operate separately until then.

Classiq, founded in 2020, makes software that helps program quantum computers, which the company has described as a Windows equivalent for quantum machines. Its customers include BMW, Rolls-Royce, HSBC and Citi, and annual revenue remains below $100 million. Classiq has raised about $200 million, and a 2025 funding round valued it at $600 million to $700 million. Its main competitor is IBM, and estimates suggest Classiq has already surpassed IBM in market share, according to Calcalist.

Employees collectively own about 10% of Classiq, worth around $230 million at the deal price, and Intel has set aside more than $100 million in retention grants. The three founders are each expected to receive between $80 million and $100 million.

Entrée Capital, the largest shareholder, could receive more than $300 million, while Team8 Capital holds a 9% stake and insurer Phoenix holds 7.5%. Intel CEO Lip-Bu Tan is a personal investor in Classiq and recused himself from acquisition discussions, according to sources close to the company.

Calcalist reported the deal would be the largest acquisition ever in quantum computing, exceeding IonQ's $1 billion purchase of Oxford Ionics last year. Intel plans to combine Classiq's synthesis platform with its spin-qubit manufacturing and software to build a full-stack quantum platform, and said it would continue supporting Classiq's existing multi-platform integrations.

The deal marks a major exit for Israel's quantum industry. Israel is considered one of the top five countries in quantum computing by number of companies and private investment, according to Calcalist. The field has not yet achieved widespread commercial use, with only 117 quantum computers worldwide and no breakthrough equivalent to ChatGPT. Classiq had been considering a Wall Street listing, including via a SPAC, but chose Intel's offer.

For Intel, the transaction is its largest Israeli acquisition since paying about $1 billion for Moovit in 2020 and $2 billion for Habana Labs in 2019.