Qualcomm is reportedly in advanced discussions to acquire AI chip startup Modular Inc. for approximately $4 billion, a significant increase from its valuation nine months prior. The move aims to diversify Qualcomm's revenue streams beyond the volatile smartphone market.
The potential acquisition of Modular by Qualcomm underscores the intense competition and strategic importance of AI chip development. It signals Qualcomm's aggressive push to expand its market reach beyond mobile devices and solidify its position in emerging AI-driven technology sectors.
Qualcomm is reportedly in advanced negotiations to acquire Modular Inc., an AI chip company, for approximately $4 billion. This potential deal represents a significant increase from Modular's valuation of $1.6 billion just nine months ago during a funding round. The acquisition would be a key step in Qualcomm's strategy to diversify its business beyond the volatile smartphone market and expand into high-growth sectors such as data center processors and autonomous vehicle chips. Modular, founded in 2022, has secured $380 million in funding to date. In parallel, Qualcomm is also reportedly in discussions to acquire another AI chip startup, Tenstorrent, for an estimated $8 billion to $10 billion. A deal for Modular could be announced in the coming weeks, though negotiations may still falter or terms could change.