Why quantum investors weren't impressed and the security angle - four notes on Intel's billion-dollar deal

Intel is acquiring the Israeli startup Classiq for $2.2 billion, in a move aimed at controlling the value chain of quantum computing. Investors are responding with skepticism, and Intel's stock is down about 1% in early trading. The security connection with the US government and the Pentagon may explain the bet. Phoenix earned $150 million on a $15 million investment.

Intel is acquiring the Israeli startup Classiq for $2.2 billion, in a move aimed at securing control over the value chain of the quantum computing market. The move is seen as a bet on a technology that may only mature in several years, and investors are responding with skepticism: Intel's stock is down about 1% in early trading, and shares of public quantum companies like IonQ and Quantinuum are also falling. The article notes that Intel is the only big-tech company to make a major acquisition in the field, while Google and Microsoft still see it as a gamble. Intel's security relationship with the US government and the Pentagon, including a $3 billion grant to build a dedicated chip factory, may explain the bet. Additionally, the deal reveals the involvement of institutional bodies in Israeli high-tech: Phoenix earned $150 million on a $15 million investment in Classiq.