Qualcomm Inc. is in advanced talks to acquire Modular Inc. in a transaction valuing the artificial intelligence infrastructure software company at about $4 billion, according to people familiar with the matter.
A transaction may be announced as soon as the coming weeks, said the people, who asked not to be identified because the information is private.
A final agreement isn’t guaranteed and the details could still change, the people added. A spokesperson for Qualcomm declined to comment. A representative for Modular couldn’t immediately be reached.
Chipmakers of all sizes are looking to seize on technology and talent at the cutting edge of AI. Qualcomm is trying to pad out its product line up and forge alliances that will make it a competitor to market leader Nvidia Corp.
Qualcomm’s shares are up 30% this year, following a surge in April and May.
Modular was founded in 2022 in Silicon Valley by Chris Lattner and Tim Davis, who met at Google and were “frustrated by AI’s fragmented infrastructure,” according to its website.
The company raised $250 million at a $1.6 billion valuation in September, bringing its total capital raised to $380 million. Modular is backed by investors including DFJ Growth, Factory, General Catalyst, Google Ventures, Greylock Partners and US Innovative Technology Fund.
The rapidly evolving landscape for so-called inferencing chips is also complicating — and in some cases boosting — valuations for startups like Modular. Deals including Nvidia’s reported $20 billion licensing agreement to acquire assets from Groq Inc. and a new funding round for Intel Capital-backed SambaNova Systems Inc. have prompted players to reevaluate their strategic value to deep-pocketed incumbents in the AI ecosystem.
Qualcomm, which is holding an investor day Wednesday, has been pursuing tuck-in acquisitions in recent years after its deal for NXP Semiconductors NV was scrapped when it didn’t receive regulatory approval. It agreed to buy London-listed semiconductor company Alphawave IP Group Plc last year for about $2.4 billion in cash. Bloomberg
AI boom makes Samsung, SK hynix workers top marriage prospects
Tata chip exports by November
You must be logged in to post a comment Login
You must be logged in to post a comment.
Magazine Subscription
We create rich business content, reach targeted business audiences, and provide valuable business information to our readers.
We create rich business
content, reach targeted business
audiences, and provide valuable business information to our readers.
Copyright © 2026 Communications Today maintained by Algocept
Leave a Reply