This article is from: srnnews.com
Intel Poised To Buy Israel’s Classiq for Record $2.3 Billion Quantum Exit
By The Media Line Staff
Intel is poised to acquire Israeli quantum computing startup Classiq for $2.3 billion in a cash-and-stock deal that could become the largest exit in the quantum computing industry, Calcalist reported.
If completed at the reported price, the acquisition would surpass the previous record set last year, when IonQ bought Oxford Ionics for $1 billion.
Classiq develops operating systems for quantum computers and employs 150 people. Its employees collectively own 10% of the company, a stake valued at $230 million under the proposed acquisition, though individual payouts would vary.
The company’s three founders, Nir Minerbi, Amir Naveh and his father, Prof. Yehuda Naveh, are each expected to receive between $80 million and $100 million from the transaction. Intel has also set aside more than $100 million in retention grants aimed at keeping Classiq employees following the acquisition.
Minerbi and Amir Naveh are graduates of the Israel Defense Forces’ (IDF) Talpiot program, along with many Classiq employees. Yehuda Naveh previously held a senior position at IBM’s Israeli development center.
The reported acquisition would add Classiq to Intel’s previous purchases of Israeli technology companies. Intel paid approximately $1 billion for mobility company Moovit six years ago and acquired Israeli company Granulate in 2022 for $650,000.
Quantum computing remains a developing industry without widespread practical commercial adoption. Only 117 quantum computers currently exist worldwide, and the machines remain extremely expensive and largely inaccessible.
Recent technological advances, however, have addressed some of the obstacles facing the sector. Progress has included reducing errors, controlling more qubits simultaneously and developing quantum devices capable of functioning without extreme cooling.
Researchers at Google, RIKEN, Stanford, Peking University, Microsoft and other organizations have reported developments that could allow quantum computers to become larger, more reliable and easier to operate.
Israel is considered one of the world’s five leading countries in quantum computing, measured by both the number of companies active in the sector and the amount of private investment.
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