Intel to Buy Quantum Software Firm Classiq for More Than $2B

Intel announced on 26 October 2026 that it has entered into a definitive agreement to acquire Classiq, an Israeli provider of quantum computing software. Intel’s release does not state a price. CTech reported the same day that the deal is worth $2.3 billion in a combination of cash and stock, and Globes reported that Classiq’s cash on hand effectively reduces the price to $2.2 billion.

The transaction is subject to regulatory approvals and is expected to close in the first half of 2027, Intel said. Classiq has raised approximately $200 million since it was founded in 2020, according to CTech and Globes.

Business Pill · VERTICAL INTEGRATION

A short explainer on vertical integration: why every layer takes a cut. It teaches the general idea only and says nothing about Intel or Classiq.

What Intel Says It Is Buying

Intel describes Classiq as providing “a unifying software platform that is agnostic to the underlying qubit modality and hardware”. Its release compares Classiq’s role in quantum computing to the role Electronic Design Automation and Computer-Aided Design software played in classical chip design.

Intel says the combination of Classiq’s synthesis platform with its own spin-qubit manufacturing and software would create a full-stack quantum computing platform. It says the deal would let it add Quantum Processing Units to a portfolio that already spans CPUs, GPUs and application-specific integrated circuits.

“Joining forces with Classiq transforms Intel’s Quantum Computing Group into a full-stack quantum computing business,” said Lip-Bu Tan, Intel’s chief executive. Intel says it intends to keep supporting Classiq’s existing integrations with other hardware after the deal closes.

Intel’s release does not state a price. Price and funding figures are as reported by CTech (Calcalist) and Globes on 26 October 2026; Globes describes the most recent round as $137 million.

Who Gets What

Each of the three founders, chief executive Nir Minerbi, Amir Naveh and Yehuda Naveh, is expected to receive between $80 million and $100 million, CTech reported. Employees collectively hold 10% of the shares, about $230 million at the deal price, and Intel has allocated more than $100 million in retention grants, according to CTech.

Entrée Capital, which led the pre-seed round, is expected to receive more than $300 million, CTech reported; Globes puts its stake at about 15%. Globes reports Team8 at about 8% and Phoenix Group at about 7%.

Tan invested in Classiq personally in its February 2022 Series B, before becoming Intel’s chief executive, CTech reported. According to sources close to Classiq, he recused himself from discussions concerning the acquisition, CTech reported. In a September podcast interview, Tan described Classiq as an attempt to build the “next Cadence” for quantum computing, according to CTech; Tan previously led Cadence Design Systems.

Where Classiq Sits in Quantum

Classiq’s customers include BMW, Rolls-Royce, HSBC, Deloitte, Toshiba and Citi, CTech reported, and Globes reports more than 600 academic clients. Its annual revenue remains in the tens of millions of dollars, well below a $100 million run rate, according to CTech. IBM is its main competitor, CTech reported.

The deal is the largest acquisition of a quantum computing company, above IonQ’s roughly $1 billion purchase of Oxford Ionics last year, both CTech and Globes reported. Globes reports that it is the first quantum acquisition by a major US tech company.

Connecting the Coverage

Tan’s comparison points to the chip-design software business: earlier today, as reported in our Cadence results piece, Cadence raised its 2026 outlook to about 21% growth. It is also the second purchase of an Israeli tech start-up we have covered today, after Unconventional AI agreed to buy NeuReality, as reported in our NeuReality piece.

The Structural Read

As we read it, the bet is on a standard that works across rival machines: Intel says it intends to keep supporting Classiq’s existing integrations with other hardware after the deal closes.

As we read it, the price is far ahead of the revenue: CTech reports annual revenue in the tens of millions of dollars, well below a $100 million run rate, against a reported $2.3 billion deal value.

As we read it, the people are part of the asset: CTech reports more than $100 million in retention grants for an approximately 150-person company.

Three Implications

FOR INTEL Intel says the deal would let it add QPUs to a portfolio that already spans CPUs, GPUs and ASICs; it is subject to regulatory approvals and expected to close in the first half of 2027.

FOR CLASSIQ’S BACKERS CTech reports that Entrée Capital, which led the pre-seed round, is expected to receive more than $300 million, and the three founders between $80 million and $100 million each.

FOR QUANTUM SOFTWARE Globes reports the deal is the first quantum acquisition by a major US tech company and says Classiq competes with IBM’s Qiskit.

The Business Engineer Lens

This story maps onto the Business Engineer framework The Nine Layers of AI.

The analysis puts it this way: “This entire ecosystem has been shaped by constraints, bottlenecks, chokepoints, and scarcity at every layer.”

As we read it, Intel is buying a position in the software layer of a newer stack: its release says Classiq plays a role similar to the chip-design software that abstracted chip design from the underlying hardware. The analysis was published in May 2026 and does not discuss quantum computing, Intel or Classiq.

What Is Not Established

Intel has not disclosed the price; the $2.3 billion and $2.2 billion figures are as reported by CTech and Globes, and the two outlets describe the 2025 funding round differently ($110 million and $137 million). The founders’ and investors’ payouts are as reported, not disclosed by the companies. The deal still needs regulatory approval. We read Intel’s release and the CTech and Globes articles in full, and the Bloomberg headline only; we did not contact Intel or Classiq.

The Bottom Line

Intel has agreed to acquire Classiq, a quantum software company that has raised about $200 million, in a deal CTech values at $2.3 billion in cash and stock. Intel says the combination would make its Quantum Computing Group a full-stack quantum computing business; the deal is expected to close in the first half of 2027.