Qualcomm to acquire AI software firm Modular in $3.9 billion stock deal

Qualcomm said it will acquire AI software company Modular in an all-stock deal valued at about $3.9 billion, a transaction that expands the chipmaker’s push beyond hardware and deeper into the software layer that helps AI run across different systems.

The companies said the deal values Modular at about $3.92 billion based on Qualcomm’s Tuesday closing price of $204.13. Qualcomm expects to issue up to 19.2 million shares of common stock to Modular equity holders in a private placement.

The transaction is expected to close in the second half of 2026.

What Qualcomm is buying

Modular builds software designed to help AI models run efficiently across different hardware architectures. It also offers a proprietary programming language used for AI software deployment.

That approach has made Modular part of a fast-growing part of the AI stack: the tools that let developers move models across chips and machines without rebuilding everything for each platform. For Qualcomm, that software layer could help widen its role as AI workloads move from devices into data centers and back again.

Qualcomm said the acquisition will strengthen its AI compute layer and deepen the software foundation for its data center strategy. The company also said the deal should help customers move AI from device to cloud more quickly.

How the deal came together

The first detailed reporting on the agreement appeared on June 24, 2026, when Wired said Qualcomm was buying Modular for nearly $4 billion in an all-stock transaction. The Wall Street Journal later reported the deal as worth about $3.9 billion, and Barron’s said Qualcomm framed the acquisition as a way to deepen its AI compute layer and software foundation for data centers.

There are some slight differences in the reported valuation, but they are consistent with a stock-based deal whose final value moves with Qualcomm’s share price. The companies’ figures put the transaction at roughly $3.9 billion, with the valuation changing modestly depending on the exact pricing reference.

The announcement came the same day Qualcomm was scheduled to host an investor day in New York, putting the acquisition alongside a broader public push to explain its AI and data center strategy.

Why it matters for Qualcomm

Qualcomm has been expanding beyond mobile chips into AI infrastructure and data center products. Buying Modular gives it a software platform built around hardware portability, which could make Qualcomm more relevant in deployments where performance, flexibility, and software compatibility matter.

That matters because AI infrastructure is increasingly defined by the interaction between chips and software. A company that can supply both may be better positioned as customers look for systems that can move models efficiently across devices, cloud environments, and different chip architectures.

The acquisition also suggests Qualcomm wants a larger role in the layer above silicon, where software choices can influence where AI runs and how easily it scales.

Modular’s background

Wired reported that Modular was founded in 2022 by Chris Lattner and Tim Davis and had about 150 employees. The company had raised $250 million nine months earlier at a $1.6 billion valuation.

That funding history helps explain why the deal has drawn attention. In a relatively short period, Modular went from startup funding rounds to being folded into one of the world’s largest semiconductor companies.

The acquisition would also bring Modular’s team into Qualcomm. Wired reported that the whole team, including the cofounders, is expected to join Qualcomm.

What happens next

The companies have not disclosed detailed integration plans beyond the initial announcement. Open questions include how much of Modular’s roadmap will remain distinct, how its software tools will be folded into Qualcomm’s existing operations, and whether the final value shifts as Qualcomm’s share price moves before closing.

So far, there have been no reported regulatory objections or customer pushback.

For investors, the next marker is how Qualcomm explains the acquisition in the context of its broader AI and data center strategy, including whether it gives more detail on software, staffing, and product integration beyond the initial terms.

The deal adds another sign that Qualcomm is trying to build a business around more than chips alone. If completed as planned, it would pair Qualcomm’s hardware scale with a software platform designed to make AI deployments more portable across the computing stack.