Qualcomm Inc. is in advanced talks to acquire Modular Inc., an artificial intelligence chip startup, in a deal that would value the company at roughly $4 billion, according to sources familiar with the matter. The negotiations, reported by Bloomberg, mark a major bet by the mobile chip giant on emerging AI hardware technology.
The potential acquisition comes as Modular's valuation has more than doubled from $1.6 billion in September 2025, underscoring the rapid escalation of interest in AI-focused silicon. For Qualcomm, the deal would expand its portfolio beyond smartphones and into the competitive AI chip market, where players like Nvidia command a dominant position.
Bloomberg's sources, who requested anonymity, noted the terms are still being finalized and the talks could still fall through. The $4 billion figure represents a premium reflecting Modular's specialized AI inference technology, which promises to reduce power consumption and latency in data centers and edge devices.
If completed, the deal would give Qualcomm immediate access to Modular's engineering talent and proprietary architecture, potentially accelerating its road map for AI accelerators. Industry analysts suggest the move could intensify competition in AI chips, particularly for inference workloads where Modular claims performance advantages.
However, regulatory scrutiny could pose a hurdle, given Qualcomm's existing market power in wireless chips and the strategic importance of AI semiconductors. The outcome remains uncertain as both parties continue negotiations.