New Delhi, June 23: Qualcomm is reportedly in advanced negotiations to acquire AI chip startup Modular in a deal that could value the company at approximately $4 billion, signaling the chipmaker’s continued push into the rapidly growing artificial intelligence sector.
If finalized, the acquisition would represent a significant increase in Modular’s valuation, which stood at around $1.6 billion following a funding round completed less than a year ago. The potential deal highlights the strong investor interest and growing competition in the AI hardware market.
Founded in 2022, Modular has emerged as one of the notable startups developing technologies aimed at improving AI computing performance. The company has attracted substantial investor backing, raising hundreds of millions of dollars to support its growth and product development efforts.
The reported acquisition aligns with Qualcomm’s broader strategy to diversify beyond its traditional smartphone chip business. While the company remains one of the world’s leading mobile processor manufacturers, it has increasingly focused on expanding into emerging sectors such as artificial intelligence, data center computing, and autonomous vehicle technologies.
Industry analysts view AI chips as one of the most important growth opportunities in the semiconductor market, with demand surging as businesses invest heavily in artificial intelligence infrastructure and advanced computing capabilities.
Reports suggest that discussions between the two companies are progressing, although the transaction has not yet been finalized and terms could still change. An official announcement could potentially be made in the coming weeks if negotiations are successfully completed.
The development comes amid a broader wave of consolidation in the AI industry, as major technology companies race to secure cutting-edge hardware and talent needed to compete in the rapidly evolving artificial intelligence landscape.
In a separate development, Qualcomm has also reportedly explored another major AI-related acquisition, underscoring the company’s ambition to strengthen its position in next-generation computing technologies and reduce dependence on the smartphone market.
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