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IT Home reported on October 27 that Intel has agreed to acquire Israeli startup Classiq Technologies Ltd. as it moves into quantum computing, seeking to seize opportunities in a field that is still in its early stages and looking for commercial applications.
The chipmaker did not disclose the value of the Classiq acquisition. Classiq's customers include BMW AG and AT&T Inc. Intel's announcement of the acquisition and its plan to build a full-stack quantum computing platform came on the eve of its third-quarter earnings report on Thursday.
According to IT Home, Classiq's customers use its technology to develop code that can be tested and run on any type of quantum hardware, allowing them to assess whether this potentially transformative technology fits their businesses. The acquisition will strengthen Intel's quantum hardware research and development capabilities and make it easier to deploy Intel's products in quantum computers.
Intel CEO Lip-Bu Tan said in a statement: “Together with Classiq, Intel's quantum computing division will transform into a full-stack quantum computing business.” The two companies expect the transaction to close in the first half of 2027.
Intel was once the world's largest chipmaker and does not want to miss out on this promising emerging market in the semiconductor industry. Under Tan's leadership, Intel has stabilized its strained finances and is now trying to regain market share lost to rivals in AI computing power.
Classiq provides customers with its own AI tools to help companies assess the practical value of quantum technology for their businesses. The company has raised more than $200 million in total and has about 130 employees. After the acquisition, it will continue helping customers develop code that runs on a range of quantum hardware, even hardware made by Intel's competitors.
Quantum computing relies on manipulating subatomic particles to speed up data processing. Although the industry is still in its infancy, many large technology companies are interested in it and hope to build a competitive advantage beyond conventional computing power. Quantum hardware itself, however, is extremely complex and difficult to deploy at scale.
For more than a decade, Intel has sought to enter quantum computing by drawing on its strengths in manufacturing silicon-based components. Like other companies in the field, Intel believes quantum components will work alongside conventional computers rather than replace them entirely. Intel is currently focused on the spin qubits approach.
Classiq CEO Nir Minerbi co-founded the startup in 2020. He said: “This shift is from scientific research to engineering implementation. When people talk about engineering, they think of Intel.”