Intel Corp. said today it has agreed to the terms of a blockbuster acquisition for the quantum computing software startup Classiq Technologies Ltd. It’ll pay $2.2 billion to buy the Israeli company, making it the second-largest acquisition in its history after its $15.3 billion deal to buy Mobileye back in 2017.

Classiq has likened itself to the Microsoft of the quantum computing world, having developed an operating system that enables the execution of complex algorithms on a range of different quantum computers. Its software is agnostic to the wide range of quantum machines currently being developed by companies such as IBM Corp., Google LLC and IonQ Inc., including systems that use trapped ions, superconductors, photons, carbon nanotubes, topological networks and the spin qubit-based system developed by Intel.

The startup’s software is designed to run on top of specialized processors that were developed specifically for quantum algorithms by a company called Quantum Machines Ltd. The operating system serves as a platform for developers to design, build, test and run software designed to run on any kind of quantum computer.

For instance, BMW used Classiq’s platform to develop quantum software that’s used to simulate car aerodynamics, so they can be modeled in different scenarios, such as where various components are built using different materials. The idea is that by stress-testing different ideas in an ultra-realistic simulation, it can avoid the need for more expensive real-world testing. Another customer is HSBC Holdings Plc, which used Classiq’s platform to develop a quantum algorithm for fraud detection. Meanwhile, the Italian bank Intesa Sanpaolo used Classiq to build an application that allows it to price options over shorter timeframes to increase its profitability per transaction.

One of the most notable things about today’s acquisition is that Intel Chief Executive Lip-Bu Tan was one of the earliest investors in Classiq, participating in its $33 million Series B round of funding in February 2022. He returned to participate in the company’s $110 million Series C in May 2025. All told, Classiq has raised just over $200 million in funding.

Today, we announced that @intel has entered into an agreement to acquire @ClassiqTech, a recognized pioneer in quantum computing software and algorithms, based in Tel Aviv, Israel. This marks a transformational moment for Intel’s quantum computing group, as we establish a new… pic.twitter.com/JbL6nUNsRE

— Lip-Bu Tan (@LipBuTan1) October 26, 2026

Intel said Classiq will become its global development center for quantum computing. It intends to combine Classiq’s platform with its existing quantum spin-qubit manufacturing process to “create a user-friendly full-stack quantum computing platform” that will enable quantum technology to mature as a mainstream computing business.

In a statement, Intel likened Classiq’s technology to electronic design automation and computer-aided design software, saying that it could have the same impact on quantum computing that those technologies had on chip design and advanced engineering. “Providing this high-level abstraction enables quantum computing to scale beyond custom hand-crafted circuits and applications to become a mainstream computing platform,” the chipmaker said.

The deal is not just a bet on the future of quantum computing, but also a major move by Intel into the world of operating systems. In some ways, it’s reminiscent of Google’s acquisition of Android 2005, a move that enabled the search engine giant to gain an entry into the nascent smartphone industry. Android has since become the world’s most popular smartphone operating system by far, giving Google substantial influence over various aspects of the industry, including hardware development.

Classiq isn’t the only company developing operating systems for quantum computers, though. Intel’s biggest rival now will likely be IBM Corp., which is not only seen as a leader in terms of quantum hardware, but also software. IBM has developed the Qiskit platform, which also enables hardware-agnostic quantum application development. Qiskit hasn’t been around as long as Classiq’s platform, but IBM’s brand recognition and status as a quantum pioneer gives it strong credibility as a solid alternative.

Intel said the acquisition is subject to customary closing conditions and regulatory approvals, but if all goes well, it expects the deal to close during the first half of next year.

Image: Intel Corp.