June 25, 2026 /SemiMedia/ — Qualcomm said it will acquire artificial intelligence software startup Modular in an all-stock transaction valued at nearly $4 billion, strengthening its software capabilities as the company pushes deeper into AI and data center markets.

Under the deal, Qualcomm expects to issue up to 19.2 million common shares to Modular shareholders. Based on Qualcomm’s latest closing price, the transaction is valued at about $3.92 billion. The deal is expected to close in the second half of this year.

Modular develops software for running AI models, particularly inference workloads. Its platform is designed to help developers deploy AI models across different processors without writing separate low-level code for each chip.

For Qualcomm, the acquisition could add an important software layer as it seeks to expand beyond smartphones and compete in AI data center infrastructure. The company plans to launch data center processors and other AI chips by the end of the year.

The deal is also seen as a step toward competing with Nvidia’s CUDA ecosystem. CUDA has been central to Nvidia’s AI dominance by connecting millions of developers to its GPU hardware through software tools, libraries and deployment workflows.

As generative AI demand increases, software has become a key battleground for chipmakers. Hardware performance alone is no longer enough; customers increasingly need software platforms that make AI models easier to deploy, optimize and scale.

Modular has positioned itself as a neutral software layer for AI computing, supporting chips from Nvidia, AMD and other suppliers. Qualcomm Chief Executive Officer Cristiano Amon said the future belongs to developer-friendly horizontal platforms that can run across different computing environments and give customers more choice in how and where they deploy AI.

Analysts said Qualcomm is betting that stronger software can help it extract more inference performance from its hardware and improve its position in data centers, where Nvidia remains the dominant supplier.

The acquisition also fits Qualcomm’s broader effort to reduce dependence on smartphone chips, which remain its main revenue source. By adding AI software capabilities, Qualcomm could make its future data center chips more attractive to cloud customers and enterprise AI developers.

Recent reports have also said Qualcomm is in talks to acquire AI chip startup Tenstorrent for $8 billion to $10 billion. If that transaction moves forward, it would further signal Qualcomm’s effort to build a broader AI infrastructure business across chips, software and developer ecosystems.