Intel has signed a definitive agreement to acquire Classiq, a Tel Aviv company that makes software for designing and running quantum algorithms, for about $2.3 billion. The deal was announced on October 26, 2026, and was reported by CTech, Globes and Quantum Computing Report.
Intel will pay in a mix of cash and its own shares, CTech reported. Globes put the effective price at about $2.2 billion once the cash Classiq holds is taken into account. Quantum Computing Report said the transaction is subject to customary regulatory approvals and is expected to close in the first half of 2027, and that the two companies will operate independently until then.
Intel plans to keep Classiq's approach of working with any kind of quantum hardware and to continue its existing integrations with other platforms, according to Quantum Computing Report. Globes reported that Classiq will become Intel's global development centre for quantum computing.
What Classiq built
Classiq sells a platform that lets developers describe what a quantum program should do and then generates the circuits needed to run it, rather than requiring engineers to assemble quantum gates by hand. The company has pitched itself as an operating system for quantum computers; CTech wrote that its ambition is to become the "Windows" of the field, while Globes said Classiq describes itself as the Microsoft of the quantum world.
The software is hardware-agnostic, meaning the same program can be compiled for machines built on different physical approaches. Classiq has announced integrations with several hardware makers over the years, which Intel has said it will keep.
Its customers include BMW, Rolls-Royce, HSBC, Deloitte, Toshiba and Citi, according to CTech, which said the company works with clients in banking, automotive and pharmaceuticals. CTech put the headcount at about 150 employees.
“Joining forces with Classiq transforms Intel's Quantum Computing Group into a full-stack quantum computing business.”
The founders and the funding
Classiq was founded in 2020 by chief executive Nir Minerbi, chief product officer Amir Naveh and chief technology officer Yehuda Naveh, a professor, CTech and Globes reported.
The company raised about $200 million in total. Its most recent round, a $110 million raise in 2025, valued it at an estimated $600 million to $700 million, according to CTech, which means Intel is paying more than three times that figure. Globes described a round of $137 million completed last year and said about $100 million of that money remains unspent, which is why it puts the net cost to Intel lower than the headline figure.
Entrée Capital led the pre-seed round and is the largest shareholder, CTech reported. Team8 Capital is the second-largest holder with about 9%, and the Israeli insurer The Phoenix holds about 7.5%. NightDragon, the fund led by Dave DeWalt, is also an investor. Globes reported that employees hold options over roughly 15% to 20% of the share capital and are likely to receive further compensation.
Intel chief executive Lip-Bu Tan was a personal investor in Classiq before taking the top job at Intel. CTech reported that he recused himself from the discussions about the acquisition.
Why Intel is buying
Intel's own quantum hardware effort is built on silicon spin qubits. What Classiq adds is a software layer that developers already use, with corporate customers in banking, automotive and pharmaceuticals.
"Joining forces with Classiq transforms Intel's Quantum Computing Group into a full-stack quantum computing business," Tan said, according to Quantum Computing Report.
By keeping Classiq open to other hardware, Intel is betting that the software can attract developers regardless of which type of quantum machine eventually wins out, while giving its own chips a direct route to those users.
A record for quantum and for Israeli tech
At about $2.3 billion, the deal is the largest acquisition yet in quantum computing, CTech reported. Geektime noted that it is roughly twice the size of the previous record, IonQ's purchase of Oxford Ionics for about $1 billion. Geektime also reported that Intel will pay an additional $175 million in retention grants to Classiq employees on top of the purchase price.
A chipmaker paying more than three times a software company's last private valuation suggests that buyers see programming tools, and the teams that build them, as a scarce asset in quantum computing.
Until the deal closes, Classiq will continue to serve its existing customers independently. Neither company has said how the brand or product line-up will change after closing.
