Key points
- Intel agrees to buy quantum software startup Classiq, Bloomberg reports
- Intel CEO Lip-Bu Tan was already an investor
- Intel's quantum team has about 70 people, Tan said in September
Intel (INTC) has agreed to buy Classiq Technologies, a quantum software startup, Bloomberg reported Monday. Intel chief executive Lip-Bu Tan had invested in Classiq before the deal.
Intel hadn't announced a price by Monday afternoon. Israeli outlets Globes and CTech put the deal at $2.2 billion and $2.3 billion, respectively, and CTech said it combines cash and Intel shares.
The Israeli company makes software that helps developers build programs for quantum computers. Its customers include BMW and AT&T, according to Bloomberg.
Tan invested in Classiq's February 2022 funding round and was still listed among its investors when it raised $110 million in May 2025. Neither company had posted an acquisition announcement on its website as of Monday afternoon.
What Classiq makes
Classiq's software is built so companies don't have to work directly with the underlying hardware. Tan compared the startup to Cadence Design Systems, the chip-design software company he ran as CEO before joining Intel. "They want to be the next Cadence to computers, quantum computing," Tan said in a September interview on the QuantumJane podcast.
The May 2025 round was led by Entrée Capital and brought Classiq's total funding to $173 million at the time.
Intel's own quantum work
Intel is building its own quantum hardware based on silicon spin qubits, which store information in the spin of single electrons held in silicon. "We have like 70 people working on this and then this is spin quantum and we also have a fab," Tan said in the same interview.
Tan's stake and the stock
Intel hadn't said publicly by Monday afternoon whether Tan still holds Classiq shares or how the deal treats his stake. CTech reported that Tan recused himself from the acquisition talks. In September, Tan said of Classiq, "I met the team. The team is super technical and brilliant."
Intel shares closed at $90.47 on Monday, up 4.0%, before the report came out at 4:01 p.m. ET. The stock was at $90.68 in after-hours trading as of 4:13 p.m.
