Qualcomm is in advanced discussions to acquire Modular Inc, an artificial intelligence chip startup, in a transaction valued at approximately $4 billion.
The report, first cited by Bloomberg News, indicates that the parties are nearing a final agreement on the deal structure.
The acquisition would mark a significant strategic shift for the San Diego-based semiconductor giant, allowing it to integrate specialized AI processing capabilities directly into its portfolio.
By targeting a startup focused on AI workloads, Qualcomm aims to diversify its revenue streams beyond its traditional dominance in mobile processors and expand its presence in the rapidly growing data center and edge AI markets.
This move comes as competition intensifies among chipmakers to capture demand for artificial intelligence infrastructure.
While Nvidia and AMD have dominated the high-end data center GPU market, Qualcomm has been seeking to leverage its expertise in power-efficient computing to carve out a niche in AI applications that require lower latency and energy consumption.