Qualcomm is reportedly in advanced negotiations to acquire artificial intelligence chip startup Modular in a deal valued at approximately $4 billion, according to Bloomberg News citing sources familiar with the matter. The transaction would represent a significant increase from Modular's previous valuation of $1.6 billion, established during a funding round completed less than a year ago. An agreement could be announced within the coming weeks, though discussions remain ongoing with no certainty that a deal will be completed.

The potential acquisition aligns with Qualcomm's strategy to diversify beyond its core smartphone chip business. The company has been expanding its presence in emerging growth segments including data center processors, AI infrastructure, and autonomous vehicle technologies, thereby reducing its dependence on the cyclical handset market.

Founded in 2022, Modular has attracted strong investor interest and raised approximately $380 million in funding to date, including a $250 million financing round completed in September of last year.

The reported talks follow Bloomberg's recent disclosure that Qualcomm is also in discussions to acquire AI chip startup Tenstorrent in a deal that could be valued between $8 billion and $10 billion. These moves underscore Qualcomm's ambitions to strengthen its position in the rapidly expanding AI hardware market and broaden its footprint beyond mobile computing. Terms of any transaction could change before formal announcement.

Qualcomm declined to comment on the report, while Modular was unavailable for comment.