Intel is acquiring Israeli quantum computing startup Classiq for $2.3 billion in a combination of cash and shares, Calcalist reported Monday, in what would be the largest acquisition of a quantum computing company to date. The deal represents a major milestone for Israel's emerging quantum technology industry, where companies have attracted substantial investment despite the technology's limited commercial adoption.
Founded in 2020, Classiq develops software designed to make quantum computers easier to program and operate. Rather than building quantum hardware itself, the company focuses on the software connecting complex quantum systems with the businesses and researchers seeking to use them. Its ambition is to provide the equivalent of a Windows operating system for quantum computing.
Classiq founders. From right: Nir Minerbi, Amir Naveh and Dr. Yehuda Naveh
(Photo: Eyal Toueg)
The company was founded by CEO Nir Minerbi, Chief Product Officer Amir Naveh and his father, Chief Technology Officer Yehuda Naveh. Minerbi and the younger Naveh are graduates of the Israeli military's elite Talpiot technological training program, while Yehuda Naveh previously held a senior position at IBM's Israeli research and development operations.
Classiq currently employs approximately 150 people and has raised around $200 million since its establishment. Its most recent major funding round, in 2025, valued the company at approximately $600 million to $700 million, making Intel's purchase price more than three times that valuation.
The acquisition is also expected to generate substantial payouts for employees. According to Calcalist, employees collectively own approximately 10% of Classiq, representing around $230 million at the transaction valuation. Intel has reportedly allocated more than $100 million in additional retention grants. The company's three founders are each expected to receive between $80 million and $100 million.
Among the major investors are Entrée Capital, Team8 Capital and Israeli insurer Phoenix. Intel CEO Lip-Bu Tan is also a personal investor in Classiq, having acquired his stake before becoming Intel's chief executive. According to sources close to the Israeli company, Tan did not participate in the acquisition negotiations because of his financial interest.
The acquisition comes as quantum computing companies compete to develop commercially viable applications for technology that remains expensive and difficult to scale. Classiq already works with customers including BMW, Rolls-Royce, HSBC and Citi, although its annual revenue remains below $100 million.
Until recently, Classiq had been considering a Wall Street listing through a merger with a special purpose acquisition company, or SPAC. Instead, the Intel deal offers its shareholders an exit at a valuation that places it among the world's most valuable quantum computing businesses.
For Intel, the transaction marks its largest significant acquisition in Israel since its approximately $1 billion purchase of transportation technology company Moovit in 2020. For Israel's quantum sector, it provides a major financial benchmark in an industry where expectations of future breakthroughs have so far run well ahead of widespread commercial adoption.