Intel agrees to buy quantum software firm Classiq of Israel

Intel said on October 27 that it had struck a deal for Classiq, an Israeli company that makes software for quantum computers, in a purchase disclosed by chief executive Pat Gelsinger on Twitter, according to a report by Chip Trends republished by 36Kr.

Intel did not state what it is paying. People familiar with the matter told Haaretz the figure is roughly $2.3 billion, which the newspaper described as the biggest purchase yet in the quantum computing industry and Intel's first sizable deal in four years. It would rank as Intel's second-largest Israeli purchase after the $15.3 billion Mobileye deal in 2017.

The companies said the transaction requires regulatory clearances and other customary conditions and should close in the first half of 2027. Until then the two will run separately.

Intel said it has worked on quantum research since 2015 and plans to pair Classiq's algorithm synthesis tools with its own silicon spin qubit work to offer a full stack of quantum products alongside its CPUs, GPUs and ASICs.

Classiq, started in 2020, has about 130 employees, has raised more than $200 million and counts BMW and AT&T as customers, Bloomberg reported. Annualized revenue reached millions of dollars, more than five times the prior-year level, per Haaretz.

Nir Minerbi, co-founder and chief executive of Classiq, said the company's aim has been "making quantum computing practical and accessible."

This story was first reported by 36Kr.