The deal would mark Qualcomm’s second major AI chip acquisition bid in weeks, as the chipmaker doubles down on its push beyond smartphones
Qualcomm is in advanced discussions to acquire AI chip startup Modular Inc in a transaction that would value the company at approximately $4 billion, according to a Bloomberg News report citing people familiar with the matter.
The potential deal represents a striking leap from the $1.6 billion valuation Modular commanded just nine months ago, when it closed a $250 million funding round one of several that have brought its total capital raised to $380 million since its founding in 2022.
A deal could be announced in the coming weeks, though Bloomberg noted that talks could still fall through or terms could change. Neither Qualcomm nor Modular responded to requests for comment from Reuters.
Qualcomm’s acquisition of Nuvia indicates a quickening pace of change in their corporate strategy. Qualcomm, headquartered in San Diego, has been the leading provider of mobile phone chipsets, but has actively sought to enter other growing markets like data center processors and self-driving car chips, as a means of reducing their dependence upon the volatile handset marketplace.
Modular would not be Qualcomm’s only AI chip target. The Information reported last week that Qualcomm is separately in advanced talks to acquire Tenstorrent, another AI chip startup, in a deal valued between $8 billion and $10 billion. If both acquisitions go through, Qualcomm would emerge as one of the most aggressive buyers in the AI silicon race, taking on established players like Nvidia and AMD on multiple fronts.
The moves reflect a broader industry pattern, as legacy chipmakers race to build or buy the capabilities needed to compete in an AI hardware market that analysts expect to grow substantially through the decade.
