The deal gives Qualcomm access to Modular’s AI-native software stack and engineering talent, including a team that helped build key components of the current AI infrastructure.
- Qualcomm said that the transaction is expected to close in the second half of 2026.
- The company added that the deal will help it create a more hardware-agnostic AI compute layer, enabling customers to run workloads across heterogeneous computing environments.
- Qualcomm believes the approach can improve performance-per-watt, increase deployment flexibility, and expand an open ecosystem for developers building AI applications.
Qualcomm Inc. (QCOM) on Wednesday announced plans to acquire AI startup Modular, strengthening its software capabilities for generative and agentic AI across data center and edge computing environments.
The deal gives Qualcomm access to Modular’s AI-native software platform and engineering talent, including a team that helped build widely used software tools and infrastructure for AI applications.
Qualcomm shares were up more than 1% in Wednesday’s pre-market trade.
QCOM CEO Touts Acquisition As A ‘Pivotal Moment’
Qualcomm CEO Cristiano Amon touted the acquisition of Modular as a pivotal moment not just for the company, but for the AI industry as a whole.
“We believe the future belongs to developer-friendly, horizontal platforms that can run across diverse compute environments and give customers real choice in how and where they deploy AI,” he said.
Qualcomm said the transaction is expected to close in the second half of 2026 but did not disclose the deal’s value. Bloomberg reported on Tuesday that the acquisition could be valued at approximately $4 billion.
Why QCOM Wants Modular
Qualcomm said the deal will help it create a more hardware-agnostic AI compute layer, enabling customers to run workloads across heterogeneous computing environments.
The company believes the approach can improve performance per watt, increase deployment flexibility, and expand an open ecosystem for developers building AI applications.
Amon also said that the Modular acquisition will help Qualcomm combine its scale and energy-efficient data center technologies with an open-ecosystem approach.
Qualcomm said Modular’s software will help customers deploy AI applications more efficiently across data centers and cloud environments while strengthening the company’s ties with major cloud providers, enterprises, and AI developers.
What Modular Does
Modular develops software that helps artificial intelligence models run efficiently across various computing hardware, including CPUs, GPUs, and specialized AI chips.
The company’s platform is designed to allow developers to build AI applications once and deploy them across multiple hardware environments without extensive modifications.
Modular CEO and co-founder Chris Lattner is known for creating the Swift programming language used by Apple Inc. (AAPL) and co-founding the Low Level Virtual Machine (LLVM) compiler infrastructure project.
What Retail Traders Think Of QCOM Stock
Retail sentiment on Stocktwits around Qualcomm trended in the ‘bearish’ territory at the time of writing.
QCOM stock is up 19% year-to-date and 33% over the past 12 months. The S&P 500 ETF (SPY) is up 22% over the past 12 months, while the Invesco QQQ Trust (QQQ) is up 34%.
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