Key facts
- Qualcomm is in advanced talks to acquire AI chip startup Modular Inc.
- The potential acquisition values Modular at approximately $4 billion.
- Modular's valuation was $1.6 billion in a funding round nine months ago.
- Qualcomm seeks to expand into data center processors and autonomous vehicle chips.
- Modular has raised $380 million in total funding.
- Qualcomm is also reportedly in discussions to acquire Tenstorrent.
Qualcomm Inc. is reportedly in advanced negotiations to acquire AI chip startup Modular Inc. 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.