Intel has announced the acquisition of Israeli quantum computing software company Classiq for $2.2 billion. This is the biggest-ever acquisition of a quantum computing company and the second biggest acquisition in Israel by Intel after the $15.3 billion acquisition of Mobileye in 2017. Tel Aviv-based Classiq has developed an operating system for quantum computers.
This acquisition represents not only a gamble for Intel, which is mainly focused on developing and manufacturing core chips for computers and servers, on the quantum computing market, but also an entry into the realm of operating systems. In many respects, the deal is reminiscent of Google’s acquisition of Android, which was a pioneering operating system for mobile phones, enabling Google to gain a foothold in a vast number of mobile devices during the mobile revolution and, in the process, to exert control over aspects of their hardware.
Classiq, founded by CEO Nir Minerbi, along with Yehuda and Amir Naveh (a father and son serving as CTO and CPO respectively), will become Intel’s global development center for quantum computing. Beyond being the largest quantum-related acquisition in history, this deal marks the acquisition of an Israeli quantum company and represents the first time a big tech firm has purchased technology in this sector.
Classiq, which was named one of "Globes" ten most promising startups in 2022, describes itself as the Microsoft of the quantum world. The company has developed an operating system that enables execution of complex algorithms on various types of quantum computers. The operating system is agnostic to the diverse range of quantum machines currently being developed by dozens of companies using different technologies, such as atoms, trapped ions, photons, superconductors, carbon nanotubes, and topological networks, at a time when it remains difficult to predict which technology will ultimately prevail and become the industry standard.
Classiq’s software runs on top of specialized processors designed for quantum computing, developed by Israeli firm Quantum Machines. Classiq’s operating system serves as a platform for developing various software applications that have until now have been characteristic primarily of supercomputers. Much like Microsoft’s Windows operating system, Classiq enables software developers to design, develop, and test software intended for quantum computers, and subsequently run it on these machines.
BMW, for instance, utilized the Classiq platform to develop simulation software for vehicle dynamics, modeling cars under scenarios where components are composed of different materials, with the aim of reducing the need for real-world physical testing. HSBC developed an application for fraud detection, while the Italian bank Intesa Sanpaolo launched an application for pricing options over shorter timeframes, allowing for greater profitability per transaction.
Classiq serves dozens of other commercial clients including Citibank, Deloitte, and Rolls Royce as well as over 600 academic clients in the fields of physics and quantum science, such as research laboratories at MIT and UCL. Since its founding more than six years ago, Classiq has established itself as the primary standard for quantum operating systems within national quantum initiatives and academic centers. This proved advantageous as hundreds of researchers transitioned from academia to the private sector, bringing the platform with them into the commercial sphere.
Classiq was founded in 2020 and has since raised $200 million. It is estimated that about $100 million remains in its coffers from a $137 million funding round completed last year. Intel announced the acquisition of the company for $2.3 billion but the cash on hand effectively reduces the purchase price to $2.2 billion.
One of the company’s early investors was none other than Intel CEO Lip Bu-Tan and the driving force behind this major acquisition. Those close to the company are aware of the criticism surrounding the decision to sell to Intel. The chip giant has acquired numerous companies in Israel including Habana Labs for $2 billion, Mobileye for $15.3 billion and Granulate for $650 million-yet most of these acquisitions have failed. The integration of these companies into Intel’s product offerings proved unsuccessful, and in the case of Granulate, the company was ultimately shut down and its employees laid off.
Nevertheless, the company remains confident that Lip-Bu Tan, who has been with Intel for 18 months, brings a fresh spirit of economic recovery and business acumen. Rumors that Intel is returning to manufacture chips for Apple and other tech giants along with contracts involving the US government, the defense sector, and the space industry are breathing new life into Intel's stock. The share price has risen by 140% since the beginning of 2026, with the company’s market cap approaching $500 billion, following a slight decline since June.
Classiq competes with IBM’s quantum operating system, which has established IBM as a global leader in the quantum field, following the company’s earlier losses to other giants in revolutions such as the PC, mobile phone, and AI. Although IBM launched its own quantum operating system, Qiskit, after the Israeli system had already gained traction in the academic community, it now poses stiff competition for customers seeking a safe brand. Classiq’s most recent funding round was to support its marketing and sales efforts, as well as its expansion into new countries. Another rival to Classiq is Horizon Quantum Computing, which has raised $22 million.
According to the Registrar of Companies, the primary beneficiaries of the deal are venture capital firms Entrée Capital, founded by Avi Eyal and Ran Achituv, which holds about a 15% stake in Classiq, yielding a return of $330 million, and Team8, which holds about a 8% stake. The investment by Team8 was led by Sarit Firon and is worth about $180 million for the fund. Phoenix Group is the third-largest shareholder, with a 7% stake worth over $150 million, a tenfold return on its original investment. Clal, which invested $5 million, stands to gain several tens of millions of dollars.
Founders Yehuda and Amir Naveh together hold 9% of Classiq’s shares, while CEO Nir Minerbi holds about 3.5%. The company’s employees hold options representing roughly 15%-20% of the total share capital and are likely to receive additional compensation following the acquisition.
This is the largest acquisition in the quantum computing sector, surpassing last year’s acquisition of Oxford Ionics for about $1 billion to IonQ and the sale of Quantum Circuits to D-Wave for $550 million earlier this year.
Of the 17 quantum-related acquisitions recorded since 2022, nine were executed by IonQ; the Intel deal marks the first such acquisition by a major US tech giant. Other tech giants are currently in the quantum race but have yet to make acquisitions in this space. Most notably, Google and IBM are developing quantum chips based on superconductors. Nvidia has opted not to develop its own quantum computer. Instead, it markets an operating system called CUDA Quantum, which serves as a bridge for quantum simulations performed by its standard graphics processors, or as a gateway to quantum computers from other companies.
Published by Globes, Israel business news - en.globes.co.il - on October 26, 2026.
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