Qualcomm is acquiring AI chip startup Modular for approximately $4 billion.

Qualcomm is in advanced negotiations to acquire AI chip startup Modular Inc. in a deal valued at approximately $4 billion, according to Bloomberg News sources. The transaction would represent a significant increase from Modular's $1.6 billion valuation achieved during its most recent funding round just nine months ago. Bloomberg reported that an agreement could be announced within the coming weeks, although discussions remain ongoing and there is no guarantee the deal will be completed.

Founded in 2022, Modular has rapidly emerged as a notable player in the AI computing sector. The company has raised approximately $380 million in total funding, including a $250 million investment round completed in September. Its quick growth and innovative AI technologies have attracted significant attention from investors and industry leaders.

For Qualcomm, acquiring Modular would support its broader diversification strategy away from the highly competitive and cyclical smartphone market. The transaction highlights Qualcomm's ongoing efforts to expand beyond its traditional smartphone chip business and strengthen its position in the rapidly growing artificial intelligence and data center markets. The company has been investing in high-growth segments such as AI processors, data center chips, and autonomous vehicle technologies.

The reported Modular acquisition is not the only major AI-related deal involving Qualcomm. According to The Information, the chipmaker is also exploring the acquisition of AI semiconductor startup Tenstorrent in a transaction that could be valued between $8 billion and $10 billion. Neither Qualcomm nor Modular has publicly commented on the reported negotiations as the company continues to expand its footprint in the booming artificial intelligence chip market.