Qualcomm is in advanced discussions to acquire AI chip startup Modular Inc. at a valuation of approximately $4 billion, according to Bloomberg, citing people familiar with the matter. The deal would represent a significant step-up from the $1.6 billion valuation Modular secured in a funding round nine months ago. Neither Qualcomm nor Modular has confirmed the discussions. Qualcomm shares fell 5.16% in premarket trading following the report.

Modular was founded in 2022 and has raised a total of $380 million to date, including a $250 million round in September 2025. The acquisition would advance Qualcomm's strategy of reducing its dependence on the smartphone chip market by expanding into data center processors and AI infrastructure. Qualcomm is simultaneously in talks to acquire fellow AI chip startup Tenstorrent for between $8 billion and $10 billion.

A deal with Modular could be announced in the coming weeks, though Bloomberg noted that talks could still fall through or terms could change. If both acquisitions close, Qualcomm would add two AI chip startups in rapid succession at a combined valuation of up to $14 billion.