Israeli startups remain acquisition targets as Intel buys Classiq

As of late October 2026, Israeli startups in AI infrastructure, cybersecurity and quantum computing remain acquisition targets for global technology companies, but not every deal closes. On Oct. 26, Globes reported that Intel had announced the acquisition of Tel Aviv-based quantum software company Classiq for $2.2 billion, the largest quantum acquisition to date. That deal followed a canceled $6 billion Anthropic-Decart acquisition in September and a completed Kiteworks-Bonfy acquisition in September.

Team8 partner Ori Barzilay told ynet Global that global investors were still chasing Israeli AI companies, especially in infrastructure and middleware rather than foundation models, and that founders felt a "now or never" urgency. Team8 had just raised $365 million. Barzilay said roughly 95% of capital was going into 5% of companies, reflecting high-conviction bets on potential winners.

Walla! Money reported in September, citing Bloomberg, that AI giant Anthropic had canceled its roughly $6 billion acquisition of Israeli start-up Decart after weeks of due diligence and advanced negotiations. Decart, founded three years earlier, had raised about $450 million, including a $300 million round in May that valued it at about $4 billion, from investors including Sequoia, Benchmark and Nvidia. The companies could still explore an investment or customer relationship, according to the report.

The next day, Kiteworks said it had bought Israeli cybersecurity startup Bonfy.AI for a sum estimated in the tens of millions of dollars. Bonfy's technology classifies and controls sensitive data in real time, including data handled by AI agents, and will be integrated into Kiteworks' platform. Bonfy, founded in early 2024, came out of stealth in June 2025 after raising $9.5 million in seed funding from TLV Partners and others.

Commentators have framed the broader wave as a shift from startup sales to retaining R&D. In an i24NEWS commentary, Dr. Eitan Lasri wrote that 2025 Israeli high-tech exports reached about $85 billion and exit deals totaled about $84 billion, including Google's $32 billion Wiz acquisition and Palo Alto Networks' $25 billion CyberArk deal. He argued that the new model keeps talent and R&D centers in Israel, citing RealSense's sale to Cognex for more than $600 million while retaining its Haifa development center. On Oct. 25, JNS commentator Eliezer Avraham wrote that Israeli exits have moved from hundreds of millions to billions and tens of billions, and that AI may define the next generation, pointing to Decart AI as an example.

Globes reported on Oct. 26 that Intel's Classiq acquisition is the biggest-ever quantum computing deal. Classiq, founded in 2020, has developed an operating system that runs on different quantum hardware. The company had raised $200 million, and about $100 million remained in cash, which reduces the purchase price from $2.3 billion to $2.2 billion. Classiq will become Intel's global development center for quantum computing, and its customers include BMW, HSBC and Intesa Sanpaolo. Major shareholders include Entrée Capital with about 15% and Team8 with about 8%, according to Globes.