Qualcomm will issue up to 19.2 million shares to acquire Modular, bolstering its AI software capabilities against Nvidia’s CUDA platform.
Qualcomm is set to acquire AI startup Modular in an all-stock transaction valued at nearly $4 billion. The deal aims to integrate Modular’s software, which allows AI models to run across different chips without requiring separate code for each processor, enhancing Qualcomm’s competitiveness in the AI space.
Modular, founded in 2022, has raised $380 million, including $250 million in a September funding round. The acquisition positions Qualcomm against Nvidia’s CUDA platform, which has been pivotal in Nvidia’s dominance by fostering a developer ecosystem around its chips.
Qualcomm will issue up to 19.2 million shares to Modular’s equity holders as part of the agreement. Separately, Qualcomm is in discussions for a potential $8 billion to $10 billion acquisition of AI chip startup Tenstorrent.