Qualcomm is in advanced discussions to acquire Modular Inc in a transaction valuing the AI chip company at about $4 billion, Bloomberg News reported on Monday, citing people familiar with the matter.
If completed, the deal would mark a significant step-up from the $1.6 billion valuation Modular secured in a funding round just nine months ago.
A global supplier of smartphone chips, Qualcomm has been working to reduce its reliance on the volatile handset market by branching out into fast-growing areas like data center processors and autonomous vehicle chips.
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A deal could be announced in the coming weeks, though talks could still fall through or the details could change, Bloomberg said.
Qualcomm did not immediately respond when contacted by Reuters, while Modular could not be reached for comment.
Founded in 2022, Modular has raised a total of $380 million to date, including a $250 million in a funding round in September.
In a separate deal, Qualcomm is in talks to acquire AI chip startup Tenstorrent for $8 billion to $10 billion, The Information reported last week.
