Chip Giant Races into Quantum: Intel Corporation (INTC.US) Acquires Startup Classiq to Build Full-Stack Quantum Business

Intel Corporation (INTC.US) has agreed to acquire Israeli startup Classiq Technologies Ltd., a move that is part of its push into quantum computing, an embryonic field that is seeking commercial applications. The chipmaker did not disclose the purchase price for Classiq. Classiq's customers include BMW and AT&T (T.US). The announcement comes just before Intel Corporation releases its third-quarter earnings on Thursday. Classiq's customers use its technology to write code that can be tested and run on any type of quantum hardware, allowing them to explore whether this potentially revolutionary technology can help their business operations. The acquisition will strengthen Intel Corporation's quantum hardware research and development capabilities and make the company's products easier to deploy on quantum computers. Intel Corporation CEO Lip-Bu Tan said in a statement: "Joining forces with Classiq will transform Intel Corporation's quantum computing unit into a full-stack quantum computing enterprise." The two companies expect the deal to close in the first half of 2027. Intel Corporation, once the world's largest chipmaker, now wants to ensure it does not miss out on a new market with huge potential in the semiconductor industry. Under Lip-Bu Tan's leadership, Intel Corporation has stabilized its strained financial position and is now seeking to recover ground lost to competitors in AI computing. Classiq provides customers with specially developed AI tools to help them test the usefulness of quantum technology for their businesses. The company has raised more than US$200 million in cumulative funding and has about 130 employees. After the acquisition is completed, the company will continue to help customers develop code that can run on multiple types of quantum hardwareeven if that hardware comes from Intel Corporation's competitors. Quantum computing relies on the manipulation of subatomic particles to accelerate data computation. Although it is still an emerging industry, the field has attracted attention from major technology companies that hope to gain an advantage beyond the processing power of traditional computers. However, the enormous complexity of quantum hardware makes large-scale deployment difficult. For more than a decade, Intel Corporation has been working to translate its strengths in manufacturing silicon-based components into a position in quantum computing. Like other companies, Intel Corporation believes quantum components will work alongside traditional computers rather than fully replace them. The company is focused on a technology called spin qubits. Classiq CEO Nir Minerbi said: "At the heart of this revolution is the shift from science to engineering. When you think of engineering, you think of Intel Corporation." He co-founded the startup in 2020.