Intel has agreed to acquire Israeli quantum computing software startup Classiq for $2.2 billion in a major move to strengthen its position in the emerging quantum computing market.
The deal is the largest acquisition in the quantum computing sector to date and Intel’s second-largest acquisition in Israel, after its $15.3 billion purchase of Mobileye in 2017.
Founded in 2020, Classiq develops software that helps developers design, build, test and run applications on different types of quantum computers. The Tel Aviv-based company aims to make quantum computing easier to use by providing a platform that works across different quantum hardware technologies.
Intel plans to combine Classiq’s software with its existing quantum computing technology to develop a complete quantum computing platform. The company said the combination could help quantum computing become more accessible and useful for businesses.
Classiq’s platform is already used by major companies, including BMW, HSBC and Intesa Sanpaolo. BMW has used the software to simulate vehicle performance under different conditions, while HSBC has developed applications for fraud detection. Intesa Sanpaolo has used the platform to build software for pricing financial options.
The startup also serves companies such as Citibank, Deloitte and Rolls-Royce, as well as more than 600 academic institutions and research organisations.
Classiq has raised more than $200 million since its founding. Its investors include Entrée Capital, Team8 and Phoenix Group. Intel CEO Lip-Bu Tan was also an early investor in the startup and participated in its funding rounds.
Following the acquisition, Classiq will become Intel’s global development centre for quantum computing. Intel aims to combine Classiq’s software platform with its spin-qubit technology to build a full-stack quantum computing system.
However, Intel will face competition from IBM, which has developed its Qiskit platform for quantum software development. Other technology companies including Google and Nvidia, are also developing technologies to support the growth of quantum computing.
Intel said the acquisition remains subject to regulatory approvals and other customary closing conditions. The company expects the deal to close in the first half of 2027.
The acquisition highlights Intel’s efforts to expand beyond traditional processors and strengthen its position in emerging computing technologies. As companies invest in quantum research, software platforms that can work across different quantum systems could become increasingly important.
