First major exit for the Israeli quantum industry: Classiq, a developer of operating systems for quantum computers, is acquired by Intel for $2.3 billion in cash and stock. The deal would make Classiq the most expensive acquisition of a quantum company to date, by far. The previous record was set last year, when IonQ acquired Oxford Ionics for $1 billion.
The deal also marks a major acquisition for Intel, which paid about $1 billion for Israeli mobility company Moovit six years ago and $2 billion for Habana Labs a year earlier. Intel has made other acquisitions since then, including Israeli company Granulate, but those deals were valued at several hundred million dollars. Intel has not acquired another Israeli company since the Granulate deal in 2022.
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Classiq founders Nir Minerbi, Amir Naveh and his father, Professor Yehuda Naveh.
(Photo: Eyal Toueg)
For Israelis accustomed to multibillion-dollar investments in cybersecurity, $2.3 billion may not seem particularly high. In the field of quantum computing, however, this is a historic agreement. Despite the excitement surrounding the field, quantum computers have not yet reached widespread practical commercial use. There are currently only 117 quantum computers in the world, and they remain prohibitively expensive and largely inaccessible.
Quantum computing has shown promise for decades, and the field has seen several significant advances in the past two years. Yet it has not had its own “ChatGPT moment,” a breakthrough that would enable widespread use of the technology.
Despite its small size, Israel is considered one of the top five countries in the world when it comes to quantum computing, both in the number of companies operating in the field and in the volume of private investment. Intel’s acquisition of Classiq for more than $2 billion could bring more investor attention to Israel and provide another catalyst for the development of its quantum industry.
The deal is reminiscent of Intel’s acquisition of Mobileye, the autonomous driving company founded by Amnon Shashua, a decade ago. This transaction helped trigger a wave of investment in Israeli companies in the sector. It is hoped that the release of Classiq will have a similar effect, with even better long-term results for the industry.
For Classiq’s founders, employees and investors, this acquisition represents an impressive exit for a company founded just six years ago. Classiq currently employs around 150 people. Employees collectively own 10% of the company’s stock, which equates to $230 million at the acquisition price, although the proceeds vary by individual. Intel has also allocated more than $100 million in retention grants to encourage employees to stay with the company.
Classiq was founded by Nir Minerbi, Amir Naveh and his father, Professor Yehuda Naveh. Minerbi is the CEO, Amir Naveh is the CPO and Yehuda Naveh is the CTO. Minerbi and younger Naveh are graduates of the Israeli army’s Talpiot program, as are many of the company’s employees. Yehuda Naveh previously held a management position at IBM’s Israel Development Center. Each of the three founders is expected to receive between $80 million and $100 million from this transaction.
Classiq generates revenue, but its annual revenue remains in the tens of millions of dollars, well below an annual run rate of $100 million. The acquisition price therefore represents a significant valuation multiple for a relatively young company.
Classiq occupies a distinctive position in the quantum computing industry. It develops software that serves as the operating system for quantum computers, bridging the gap between complex hardware and the people and organizations who seek to use it. The company’s ambition is to become the “Windows” of quantum computing.
IBM, a pioneer in quantum computing, is its main competitor. Estimates suggest that Classiq has already overtaken IBM in terms of market share, although the companies’ positions depend on how that market is measured. Classiq’s software is hardware agnostic, meaning it is designed to work across different quantum computing platforms rather than being tied to a single manufacturer.
Its clients span several sectors, including banking, automotive and pharmaceuticals. These include BMW, Rolls-Royce, HSBC, Deloitte, Toshiba and Citi.
Classiq has raised approximately $200 million to date, making this acquisition a profitable outcome for its investors as well. Its latest funding round, a $110 million raise in 2025, valued the company at between $600 million and $700 million, well below the acquisition price.
Entree Capital, which led Classiq’s pre-seed round and is the main shareholder, will be the biggest winner. The fund is expected to receive more than $300 million from an investment of just a few million dollars. Team8 Capital, the company’s second largest shareholder, holds a 9% stake.
The deal is also expected to benefit Israeli savers through The Phoenix, which holds a 7.5% stake in Classiq. Unlike many recent Israeli tech exits, most of which have involved cybersecurity companies, Classiq is incorporated in Israel. The state is therefore supposed to receive tax revenues from the transaction beyond the taxes paid by the founders and employees who sell their shares.
However, because a significant portion of the consideration is Intel stock, not all of the proceeds will be immediately realized in cash.
One of Classiq’s private investors is Lip-Bu Tan, Intel’s current CEO, who has led the chipmaker’s turnaround over the past year and a half. Tan personally invested in Classiq before becoming CEO of the company which is currently acquiring the startup. According to sources close to Classiq, he recused himself from discussions regarding the acquisition.
Other notable investors include NightDragon, a fund led by Dave DeWalt, who previously ran cybersecurity company McAfee.
Until recently, Classiq was exploring a possible IPO on Wall Street, where several quantum computing companies have gone public over the past year. Most entered the public markets through mergers with special purpose acquisition companies, or SPACs, and the resulting stock performance has been weak in recent months.
The only company to go public via a traditional IPO was Quantinuum, which debuted with a peak valuation of $15 billion. Since then, it has lost 35% of its value and is currently valued at around $9.5 billion. IonQ, which went public through a SPAC merger in 2021, is now the most valuable publicly traded quantum company, with a market cap of around $13 billion.
At $2.3 billion, the Classiq acquisition would place the Israeli company among the five most valuable companies in the global quantum computing sector. The valuation also illustrates the premium Intel is willing to pay for a company operating in an area that has yet to achieve broad commercial adoption.
Like many founders, Minerbi and Naveh had talked about global expansion and starting an independent company. But with Intel offering $2.3 billion for a company that had raised around $200 million and was valued at between $600 million and $700 million in its last funding round, the acquisition represents a substantial outcome for its shareholders and a major milestone for Israel’s quantum industry.
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