Qualcomm moves closer to acquiring AI chip startup Modular

Qualcomm is reportedly in the final stages of negotiations to acquire artificial intelligence (AI) infrastructure software company Modular.

Bloomberg reported on June 22 (local time), citing people familiar with the matter, that Qualcomm values ​​Modular at approximately $4 billion and is in talks to acquire the company.

Modular was founded in 2022. The company has developed a platform that allows AI models to run on a variety of hardware, including central processing units (CPUs), graphics processing units (GPUs), and application-specific integrated circuits (ASICs), all with a single codebase. Last September, Modular raised $250 million at a valuation of $1.6 billion. The company’s total funding to date reaches $380 million.

According to Bloomberg, as competition among semiconductor companies intensifies for cutting-edge AI technology and talent, Qualcomm is also working to strengthen its product lineup and expand related partnerships to lay the foundations to compete with market leader Nvidia.

Especially as the AI ​​inference chip market evolves rapidly, valuing startups like Modular has become increasingly complex. In fact, valuations for some startups have increased even more.

Bloomberg explained that the strategic value of these startups is being reassessed among well-capitalized established players in the AI ​​ecosystem, as Nvidia signs a $20 billion licensing deal to acquire Groq’s assets and Intel Capital-backed SambaNova Systems launches a new funding round.

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