Intel acquires Israeli startup Classic to build an entire technology stack to tackle quantum computing

chip manufacturerintel (Intel) agrees to the acquisitionisrael quantum computing Software startup Classic Technologies is using it to expand its footprint in the quantum field, which is still in its infancy and actively seeking commercial applications.

Intel did not disclose the transaction amount of the acquisition of Classic. Classic’s customers include German carmaker BMW and American telecom operator AT&T. These customers use the company’s technology to write code, test it, and execute it on different types of quantum hardware to see if this potentially revolutionary technology can help improve their operations.

Intel said the acquisition of Classic will strengthen its quantum hardware layout and make it easier for customers to deploy Intel products on quantum computers.

Intel CEO Chen Liwu said in a statement: “Joining with Classic will transform Intel’s quantum computing division into a quantum computing business that covers the entire technology stack.” The two companies are scheduled to complete the transaction in the first half of 2027.

Intel, once the world’s largest chip maker, now wants to make sure it doesn’t miss out on a potentially huge new market in the semiconductor industry. Under the leadership of Chen Liwu, Intel has stabilized its tight financial situation and is currently trying to regain the lost market to competitors in the field of AI computing.

Classic provides clients with specially developed AI tools to help clients test whether quantum computing technology is a good fit for their own business. The startup has raised more than $200 million to date and has about 130 employees. After the acquisition is complete, Classic will continue to help customers develop code that can run on a variety of quantum hardware, even if the hardware comes from Intel’s competitors.

Quantum computing accelerates data processing by manipulating subatomic particles. Although the industry is still in its infancy, major technology companies are increasingly focusing on the technology in hopes of gaining advantages over traditional computer computing power. However, the complexity of quantum hardware makes large-scale deployment of this technology difficult.

For more than a decade, Intel has been trying to turn its advantages in silicon-based component manufacturing into competitiveness in the field of quantum computing. Like other industries, Intel believes that quantum computing components will work in harmony with traditional computers in the future rather than completely replacing them. Intel is currently focusing on a technology called spin qubits.

Nir Minerby, co-founder and CEO of Classic, said: “The core of this revolution is the shift from scientific research to engineering practice. When you talk about engineering, you think about Intel.”