Chip giants grab the quantum circuit: Intel (INTC.US) acquires startup Classiq to build a full-stack quantum business

The Zhitong Finance App learned that Intel (INTC.US) has agreed to acquire Israeli startup Classiq Technologies Ltd., a move as part of its quantum computing layout. Quantum computing is a field that is still in its infancy and is seeking commercial applications.

The chipmaker did not disclose the price of buying Classiq. Classiq's customers include BMW and AT&T (T.US). The announcement comes just before Intel released its third-quarter earnings report on Thursday.

Classiq's customers use its technology to write code that can be tested and run on any type of quantum hardware to explore whether this potentially revolutionary technology can help their business operations. The acquisition will enhance Intel's quantum hardware research and development capabilities and make the company's products easier to deploy in quantum computers.

“Joining forces with Classiq will transform Intel's quantum computing division into a full-stack quantum computing enterprise,” Intel CEO Chen Liwu said in a statement. The two companies expect the deal to close in the first half of 2027.

Intel, once the world's largest chipmaker, wants to make sure it doesn't miss out on a new market with huge potential in the semiconductor industry. Under Chen Liwu's leadership, Intel has stabilized its strained financial situation and is currently seeking to recover lost ground taken over by competitors in the field of artificial intelligence computing.

Classiq provides customers with specially developed artificial intelligence tools to help them test the utility of quantum technology for their business. The company has raised more than $200 million and has around 130 employees. Once the acquisition is complete, the company will continue to help customers develop code that can run on multiple types of quantum hardware — even if that hardware comes from Intel's competitors.

Quantum computing relies on manipulating subatomic particles to speed up data computation. Although it's still an emerging industry, the sector has attracted the attention of big tech companies looking to gain advantages over the processing power of traditional computers. However, the enormous complexity of quantum hardware makes it difficult to deploy on a large scale.

For more than a decade, Intel has been working to transform its strengths in silicon-based component manufacturing into a position in quantum computing. Like other companies, Intel believes quantum components will work together with traditional computers rather than completely replace them. The company focuses on a technology called spin qubits (spin qubits).

Neil Minerby, CEO of Classiq, said, “At the core of this revolution is a shift from science to engineering. When you think of engineering, you think of Intel.” He co-founded this startup in 2020.