June 22 - Qualcomm is reportedly in advanced discussions to purchase AI chip developer Modular Inc for roughly $4 billion, Bloomberg News said on Monday, citing people familiar with the matter. The proposed price would be a large increase compared with the $1.6 billion valuation Modular reached in a funding round nine months ago.
According to the report, a formal announcement could come within the coming weeks, but the parties remain in talks and there is no guarantee the discussions will produce a finalized agreement. Bloomberg cautioned that negotiations could still fail or that terms could change.
Qualcomm did not immediately respond to requests for comment, and Modular could not be reached for comment, the report said.
Modular was founded in 2022 and has raised a total of $380 million to date, including a $250 million financing round completed in September, the report noted. The company has emerged as one of several AI-focused chip startups attracting investor interest in recent months.
The reported Modular talks come as Qualcomm, a global supplier of smartphone chips, seeks to reduce its dependence on the cyclical handset market by expanding into faster-growing segments such as data center processors and chips for autonomous vehicles.
In a separate development referenced in the report, Qualcomm is also said to be in discussions to acquire another AI chip startup, Tenstorrent, in a potential transaction valued at $8 billion to $10 billion, according to The Information.
Context and details
- The reported valuation for Modular is about $4 billion, contrasting with a $1.6 billion valuation nine months earlier.
- Modular's funding history includes $380 million raised to date, of which $250 million came in a September round.
- Qualcomm's strategic moves are framed as an effort to diversify beyond smartphones into data center and autonomous vehicle chips.
Sources and status
Bloomberg News was cited as the source for the report, which referenced unnamed people familiar with the matter. The situation remains fluid: talks are advanced but not finalized, and either side could still walk away or alter terms.