The acquisition aims to bolster Qualcomm’s data-center presence amid surging generative AI demand and rivalry with Nvidia.
Qualcomm will acquire AI startup Modular for an undisclosed sum, with the deal reportedly valued at $4 billion. The move seeks to expand Qualcomm’s footprint beyond smartphones into data centers and AI chips, targeting a market dominated by Nvidia’s CUDA platform.
Qualcomm has been pushing into AI-driven markets, with plans to ship processors for data centers and other AI chips by year-end. The deal follows rising demand for generative AI infrastructure, positioning Qualcomm against Nvidia’s $5 trillion valuation.
The transaction is expected to close in the second half of 2024, though financial terms remain undisclosed.