Insider Brief
- Israeli quantum computing companies Quantum Art and Classiq are reportedly in advanced talks to go public on Wall Street through SPAC mergers that could value each company between $2 billion and $5 billion.
- Quantum Art is developing trapped-ion quantum hardware, while Classiq builds quantum software and has partnerships and customers that include Nvidia, Microsoft, Amazon Web Services, BMW, Rolls-Royce and Citi.
- The reported deals reflect growing investor interest in quantum computing as companies seek access to larger pools of capital despite the industry’s limited current revenue and high development costs.
- Photo by engin akyurt on Unsplash
PRESS RELEASE — wo of Israel’s best-funded quantum computing companies are in advanced discussions to go public on Wall Street through mergers with special purpose acquisition companies, underscoring growing investor demand for a sector that remains largely pre-revenue but is attracting multibillion-dollar valuations.
According to YNet News, citing information first obtained by Calcalist, hardware developer Quantum Art and quantum software company Classiq are negotiating potential SPAC mergers that could value each company between $2 billion and $5 billion. The companies declined to comment on the reported discussions.
If completed, the transactions would add to a wave of quantum companies entering public markets through SPAC mergers as investors seek exposure to a technology that many expect could begin delivering — potentially — more commercially significant capabilities later this decade.
Industry sources cited by YNet News estimate that roughly 30 SPACs are currently searching for quantum computing acquisition targets. Among them is an Israeli SPAC led by entrepreneurs Tom Livne and Eyal Waldman that recently raised $172 million.
Quantum Art is reportedly further along in the process and could become the first Israeli quantum computing company listed on Wall Street, potentially before the end of 2026. Classiq is also weighing another private fundraising round before pursuing a public listing in an effort to secure a higher valuation, according to the report.
Two Different Paths Into Quantum Computing
Although both companies operate in quantum computing, they target different parts of the technology stack.
Founded in 2022, Quantum Art is developing a full quantum computer based on trapped-ion technology. Trapped-ion systems store quantum information in electrically charged atoms suspended by electromagnetic fields. Researchers generally view the approach as offering high-quality quantum operations, although building large-scale systems remains technically challenging.
According to YNet News, Quantum Art employs about 60 people and recently raised $140 million, bringing its total funding to approximately $200 million. The company was founded by Dr. Tal David, former head of Israel’s national quantum computing program; Prof. Roee Ozeri of the Weizmann Institute of Science; and Dr. Amit Ben-Kish, who completed his doctorate under Nobel Prize-winning physicist Prof. David Wineland.
The company is seeking to capitalize on investor enthusiasm surrounding trapped-ion quantum computing. Public companies using similar technology, including IonQ and Quantinuum, have reached valuations of roughly $20 billion, although Quantum Art is reportedly seeking a lower valuation because it has yet to establish significant revenue.
Classiq, founded in 2020, focuses instead on software. Rather than building quantum hardware, the company develops software tools designed to help organizations create applications that can run across different quantum computers.
YNet News described the platform as a potential operating layer for quantum computing, comparable to the role traditional operating systems played in making conventional computers easier to use. If quantum hardware becomes widely deployed, software that works across multiple machines could become an important part of the ecosystem.
The company has raised about $200 million to date and counts AMD, Qualcomm, IonQ and SoftBank among its investors. According to YNet News, Classiq already works with Nvidia, Microsoft and Amazon Web Services, while its customers include Comcast, BMW, Rolls-Royce, Citi, Toshiba and SoftBank. Industry estimates place its annual revenue in the tens of millions of dollars, considerably higher than many quantum startups at a similar stage.
Public Markets Fuel Capital Race
According to YNet News, five quantum startups have already gone public through SPAC mergers since the beginning of 2026, while another five are in advanced merger discussions. Together, the publicly listed companies carry a combined valuation of roughly $70 billion.
Quantum computing companies require unusually large amounts of capital because developing practical quantum systems demands years of research, specialized equipment and highly trained scientists before substantial commercial revenue emerges.
Traditional venture capital has financed much of that work so far. However, many investors believe additional funding will be needed as companies move toward larger quantum processors and commercial deployment.
A SPAC merger can provide several hundred million dollars in relatively short order, allowing companies to expand engineering teams, increase research efforts and accelerate product development without waiting for traditional initial public offerings, the article suggests.
Opportunity and Risk
Israel has emerged as a leading quantum technology hubs despite its relatively small size.
According to YNet News, the country is home to roughly 20 quantum companies out of about 270 worldwide. Many originated from research conducted at institutions including the Weizmann Institute and the Technion.
About $800 million has been invested in Israeli quantum companies to date, with Quantum Art, Quantum Source and Classiq alone raising approximately $500 million during 2025, according to the report. Israel ranks fifth globally in total investment in quantum companies and seventh in overall ecosystem strength.
Despite growing investor enthusiasm, the sector continues to face important limitations.
Most quantum computing companies generate limited revenue, meaning valuations depend largely on expectations that the technology will eventually deliver transformative commercial applications. Those expectations remain difficult to validate because practical, fault-tolerant quantum computers capable of solving large real-world problems have not yet been achieved.
According to YNet News, publicly traded quantum companies often command revenue multiples exceeding 100 times annual sales. Rigetti, one of the earliest quantum companies to reach public markets through a SPAC merger, reportedly carries a valuation of about $7 billion despite annual revenue of roughly $7 million.
