Qualcomm Reportedly Eyeing $4 Billion Acquisition of AI chip Startup Modular

Tuesday, 23 June 2026 at 03:47

Qualcomm is reportedly in advanced talks to acquire AI chip company Modular in a deal that could be worth around $4 billion. If completed, the acquisition would mark a major step in Qualcomm's efforts to expand beyond smartphones and strengthen its position in the fast-growing AI market.

The reported valuation is particularly noteworthy, as Modular was valued at approximately $1.6 billion just nine months ago. The sharp increase highlights the growing demand for AI-focused semiconductor companies.

Qualcomm Looks Beyond Smartphones With AI Expansion

According to the report, Qualcomm sees Modular as a key part of its long-term strategy to diversify its business. While the company remains one of the world's leading mobile chip makers, it is increasingly looking toward new growth opportunities in data centers, artificial intelligence, and autonomous vehicles.

The potential acquisition would help Qualcomm strengthen its AI hardware portfolio and compete more effectively in markets where demand for high-performance computing continues to rise.

Reports also suggest that Qualcomm is exploring another AI-focused acquisition. The company is said to be in discussions with Tenstorrent, another well-known AI chip startup. Together, these moves would signal an aggressive push into the AI infrastructure market.

Key Points

Qualcomm is reportedly in talks to acquire Modular.
The deal could be worth around $4 billion.
Modular was valued at about $1.6 billion nine months ago.
The company's valuation has grown rapidly due to AI demand.
Qualcomm is looking to reduce its reliance on the smartphone market.
The company wants to expand into artificial intelligence.
Data centers are a major target for Qualcomm's future growth.
Autonomous driving technology is another key focus area.
The acquisition could strengthen Qualcomm's AI chip portfolio.
Qualcomm is also reportedly interested in acquiring Tenstorrent.
The company appears to be pursuing multiple AI investments.
AI hardware has become one of the fastest-growing segments in the semiconductor industry.
Qualcomm is positioning itself for long-term growth beyond mobile processors.

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The reported talks show how seriously Qualcomm is pursuing AI opportunities. As demand for AI computing continues to surge, acquiring companies like Modular and potentially Tenstorrent could help Qualcomm build a stronger presence in data centers, enterprise AI, and next-generation automotive platforms.

Qualcomm is already doing its rounds around the AI technology with its current chipsets. The Snapdragon 8 Elite 6 Pro series is expected to bring enhanced AI as well as massive improvements over the current generation. If the company proceeds with the acquisition of Modular, this will certainly establish a long-term approach and evolution in the AI scene.