Qualcomm is in advanced negotiations to acquire Modular, an artificial intelligence chip startup, in a transaction valued at approximately $4 billion, according to people familiar with the matter.
The potential acquisition represents a significant strategic pivot for the San Diego-based semiconductor giant.
While Qualcomm has recently focused on partnerships—such as its collaboration with OpenAI and MediaTek to develop dedicated smartphone processors for AI workloads—this move suggests a desire to internalize key AI silicon capabilities.
By acquiring Modular, Qualcomm aims to strengthen its position in the rapidly expanding market for AI accelerators, competing directly with established players like Nvidia and AMD.
The deal, if completed, would mark one of the largest acquisitions in the semiconductor sector this year.
It underscores the intense competition for talent and technology in the AI hardware space, where companies are increasingly looking to buy their way into new capabilities rather than building them from scratch.