The reported deal would significantly boost Qualcomm’s AI ambitions and mark a sharp jump in Modular’s valuation less than a year after its last funding round.
Qualcomm is reportedly in advanced negotiations to acquire artificial intelligence chip startup Modular in a deal that could value the company at approximately $4 billion, according to a Bloomberg News report citing sources familiar with the matter.
If finalized, the transaction would represent a significant increase from Modular’s previous valuation of $1.6 billion, which was established during a funding round completed less than a year ago.
The potential acquisition aligns with Qualcomm’s broader strategy to diversify beyond its core smartphone chip business. The company has been expanding its presence in emerging growth segments, including data center processors, AI infrastructure, and autonomous vehicle technologies, to reduce its dependence on the cyclical handset market.
Bloomberg reported that an agreement could be announced within the coming weeks, although discussions remain ongoing and there is no certainty that a deal will be completed. Terms of the transaction could also change before any formal announcement.
Qualcomm did not immediately comment on the report, while Modular was unavailable for comment.
Founded in 2022, Modular has attracted strong investor interest and has raised around $380 million in funding to date. This includes a $250 million financing round completed in September last year.
The reported talks come as Qualcomm continues to explore opportunities in the AI semiconductor sector. Last week, The Information reported that the company is also in discussions to acquire AI chip startup Tenstorrent in a deal that could be valued between $8 billion and $10 billion.
The moves underscore Qualcomm’s ambitions to strengthen its position in the rapidly expanding AI hardware market and broaden its footprint beyond mobile computing.
