Qualcomm announces acquisition of AI software company Modular for $3.9–4 billion, expanding its full-stack AI infrastructure capabilities.
Qualcomm confirmed its acquisition of Modular, an AI infrastructure software provider, in a transaction valued at approximately $4 billion according to Bloomberg. The acquisition brings software capabilities that enable AI model deployment across various hardware platforms, supporting Qualcomm's data center ambitions. The chipmaker has not publicly disclosed the official acquisition price.
Modular's valuation has surged significantly since its most recent funding round. Established in 2022, the company has secured $380 million in total capital, with a $250 million investment round completed in September 2025 that valued the company at $1.6 billion. The reported $4 billion purchase price represents more than a 2.5-fold increase in less than twelve months. Qualcomm indicated the transaction should finalize during the latter half of 2026.
Shares of QCOM advanced 1.1% during premarket trading on Wednesday, rebounding from an 8% decline in the previous session. The semiconductor company's stock has surged 57% during the past three-month period.
Modular's technology provides software infrastructure that allows developers and enterprises to deploy AI models with optimized performance across diverse hardware architectures. This cross-platform compatibility represents a strategic asset for Qualcomm's broader objectives. "The acquisition is expected to strengthen Qualcomm Technologies' ability to deliver a more optimized AI compute layer across a broad range of platforms and use cases," Qualcomm said in a statement, adding that it "deepens the software foundation for Qualcomm Technologies' data center strategy."
Qualcomm has intensified its data center expansion efforts as part of a strategy to diversify beyond the smartphone chip sector, which experiences significant market fluctuations. While the company has established strong AI chip positioning in edge computing applications—including smartphones, personal computers, and automotive systems—the data center segment presents distinct challenges.
Patrick Moorhead, an analyst at Moor Insights & Strategy, highlighted the strategic fit between the two companies. "Qualcomm is very good at edge enabling software, but that's not the same as data center software capability," Moorhead said. "Strategically, this could help to better answer the data center question."
The acquisition announcement coincided with Qualcomm's investor day on Wednesday, where the company planned to reveal a major data center chip partnership and unveil next-generation processor details. In separate reporting, The Information indicated that Qualcomm is pursuing discussions to acquire AI chip developer Tenstorrent in a transaction estimated between $8 billion and $10 billion. Neither company has confirmed those negotiations.