Intel (NASDAQ: INTC) has announced an agreement to acquire Classiq, an Israeli quantum computing software startup, in a move that advances Chief Executive Lip-Bu Tan's goal of expanding the chipmaker into quantum technology. The deal is expected to close in the first half of 2027.

Intel announced the agreement on Monday from its Santa Clara and Tel Aviv offices. The company did not put a price on the transaction, though Bloomberg has estimated its value at roughly $2.3 billion.

What Classiq Does

Classiq develops software that automatically designs quantum algorithms, enabling developers and companies to build quantum applications without coding each circuit by hand. The startup employs about 130 people and has raised more than $200 million to date. Its customers include BMW and AT&T.

Integration Plans and Closing Conditions

Intel said it will combine Classiq's software with its own spin-qubit chips and manufacturing capabilities, allowing the company to add quantum processors (QPUs) to an existing lineup that spans CPUs, GPUs, and custom chips. After the deal closes, Intel plans to keep Classiq's software independent of any particular qubit type or hardware.

The transaction remains subject to regulatory clearance, and the two companies will continue to operate separately until it is completed. With closing targeted for the first half of 2027, that regulatory review is the milestone to watch before Intel can begin folding Classiq into its quantum program.

Classiq co-founder and Chief Executive Nir Minerbi said the two companies “can help unlock the benefits of quantum computing and accelerate its adoption sooner.”

Tan's Turnaround Strategy

Since taking charge at Intel, Tan has told investors that divesting assets he views as non-core is central to the company's turnaround. In April 2025, for example, Intel agreed to sell a 51% stake in its programmable-chip business, Altera, to private equity firm Silver Lake for $4.46 billion, saying the sale would allow it to focus on its main business. Intel has also considered selling its network and edge unit, formerly known as NEX, which generated $5.8 billion in revenue in 2024. The Classiq acquisition sits on the other side of that portfolio reshaping: even as Intel sheds units, it is directing new capital toward quantum.

Tan's own ties run through the quantum field. Before joining Intel, he ran Cadence Design Systems and chairs Walden International. He is also a long-time investor in PsiQuantum and joined that company's board in 2026.

Intel's Quantum Track Record

Intel has supported quantum research since 2015 and says it is the only company that can claim to manufacture qubit chips, along with the cold-temperature control electronics around them, at large scale using standard silicon manufacturing. In 2023, it shipped Tunnel Falls, a 12-qubit silicon chip, to university and government laboratories, including Sandia National Laboratories and the University of Wisconsin-Madison, according to Physics World. Qubits are the basic units of quantum information, and their fragility is why the surrounding hardware — including the cold-temperature control electronics Intel manufactures — is needed to keep them stable.

Intel's chips still carry far fewer qubits than those of its rivals. IBM and Google have run processors with hundreds of qubits. Intel is betting that its spin qubits, which are about the size of a transistor, will be easier to scale up over time.

A Consolidating Quantum Market

The acquisition lands in a consolidating market. In July 2026, IBM signed an agreement to acquire HRL Laboratories, the research institution backed by Boeing and General Motors, to add silicon-spin qubit expertise to its superconducting program. Meanwhile, Microsoft has built a quantum chip small enough to fit in standard server racks. Together, the moves show major technology companies building quantum capability through both acquisitions and in-house development.