Qualcomm is in advanced talks to acquire Modular in a transaction that values the artificial intelligence chip startup at about $4 billion, according to people familiar with the matter.
The deal could be announced as early as the next few weeks, said these people, who asked not to be identified because it is private information.
A final agreement has not yet been reached, and the talks could end without agreement or have their details changed, the sources added. A Qualcomm spokesperson declined to comment. A Modular representative could not immediately be reached.
Study abroad
Upgrade your career!
Chipmakers of all sizes are trying to capture technology and talent on the AI frontier. Qualcomm seeks to strengthen its product portfolio and establish alliances that make it a competitor to market leader Nvidia.
Modular was founded in 2022, in Silicon Valley, by Chris Lattner and Tim Davis, who met at Google and were “frustrated with the fragmented infrastructure of AI,” according to the company’s website.
The company raised US$250 million at a valuation of US$1.6 billion in September 2025, bringing the total raised to US$380 million.
Modular has among its investors names such as DFJ Growth, Factory, General Catalyst, Google Ventures, Greylock Partners and US Innovative Technology Fund.
The rapidly changing landscape of so-called inference chips is also complicating — and, in some cases, boosting — valuations of startups like Modular. Deals such as Nvidia’s alleged $20 billion licensing deal to acquire Groq assets and a new fundraising round from SambaNova Systems, backed by Intel Capital, have led several players to reassess their strategic value to large companies in the AI ecosystem.
Qualcomm has been pursuing smaller, tuck-in acquisitions in recent years after its purchase of NXP Semiconductors was canceled due to a lack of regulatory approval. Last year, the company agreed to buy London-listed semiconductor company Alphawave IP Group for about $2.4 billion in cash.
Continues after advertising
© 2026 Bloomberg L.P.
