Middle East Watch

Intel has announced the acquisition of Israeli quantum computing software company Classiq for $2.2 billion. This is the biggest-ever acquisition of a quantum computing company and the second biggest acquisition in Israel by Intel after the $15.3 billion acquisition of Mobileye in 2017. Tel Aviv-based Classiq has developed an operating system for quantum computers.

This acquisition represents not only a gamble for Intel, which is mainly focused on developing and manufacturing core chips for computers and servers, on the quantum computing market, but also an entry into the realm of operating systems. In many respects, the deal is reminiscent of Google’s acquisition of Android, which was a pioneering operating system for mobile phones, enabling Google to gain a foothold in a vast number of mobile devices during the mobile revolution and, in the process, to exert control over aspects of their hardware.

Classiq, founded by CEO Nir Minerbi, along with Yehuda and Amir Naveh (a father and son serving as CTO and CPO respectively), will become Intel’s global development center for quantum computing. Beyond being the largest quantum-related acquisition in history, this deal marks the acquisition of an Israeli quantum company and represents the first time a big tech firm has purchased technology in this sector.

TEL AVIV, ISRAEL — Campaign banners bearing the faces of Israel’s political leaders cover buildings and roadsides, while in homes, coffee shops and family gatherings, the same question dominates conversations: Will Prime Minister Benjamin Netanyahu remain in power?

With Israelis heading to the polls Tuesday, the country is bracing for a closely contested election that could end in another political deadlock. But this vote is unlike any other in Israel’s recent history.

For many Israelis, the election has become a referendum on accountability for the failures that allowed Hamas terrorists to carry out the Oct. 7, 2023, massacre — the deadliest attack in Israel’s history.

Many saw this as a make-or-break election to defeat Israel’s most right-wing-ever government, accusing it of stoking racism and hatred.

A huge caveat in all of the current analysis is that the high number of as-yet-uncounted absentee ballots – mostly representing the votes of Israeli soldiers – mean that we are not expecting to have a clear idea of the final results for another day or two.

Overnight, both Netanyahu and Eisenkot addressed their supporters, pledging to form the next government.

“The right-wing bloc has a clear, decisive majority among the Zionist public, among the Jewish public and all those who support the Jewish state. That is what has become clear. A decisive majority,” the PM told his celebrating supporters – although he stopped short of declaring victory.

“We must form a strong, national, right-wing government. That is what must be done,” he added.

“The public has chosen change,” Eisenkot told his Yashar party after exit polls came out – most of which were initially more favourable to the opposition. “The coalition of failure has lost the people’s trust. The Israeli public voted against Benjamin Netanyahu continuing as prime minister.”

“I will work with my partners to ensure that the people’s decision is translated into a Zionist government: stable and good for all of Israeli’s citizens. And quickly – because that is what this moment demands, and because the country needs to be brought back together.”

The current Memorandum of Understanding (MOU) on US aid to Israel expires in 2028, and no solution is yet in sight for the decade beginning in 2029. While Prime Minister Benjamin Netanyahu remarked over the weekend that Israel can no longer rely on US defense assistance in its current form, urging the economy to prepare for a significant shift, *Globes* has learned that the primary point of contention between Jerusalem and Washington on aid does not concern the financial aspect, but rather the issue of cooperation.

As part of their demands, US officials are seeking not merely the sharing of knowledge, but the transfer of Israeli expertise to the US, to be managed by the US including patents and joint development programs. This is a scenario that Israel cannot accept: the erosion of the fundamental technological advantage held by its defense industries in the international market.