Qualcomm Inc. is in advanced discussions to buy Modular Inc., an artificial intelligence infrastructure software company, in a deal that could value the startup at about $4 billion, according to people familiar with the matter.
The transaction could be announced in the coming weeks, the people said. They asked not to be identified because the discussions are private.
The reported negotiations point to Qualcomm’s continued push into AI as chipmakers and software companies race to position themselves in a market that has drawn heavy investment and intense competition. Modular works on software aimed at AI infrastructure, an area that helps support the systems and tools used to build and run AI applications.
Qualcomm is best known for its mobile chips and broader semiconductor business, but the company has been expanding its interest in AI-related products and services. A purchase of Modular would give Qualcomm a stronger software layer to complement its hardware offerings, although the companies have not publicly announced any agreement.
Modular has gained attention in the AI software ecosystem for its focus on infrastructure, a segment that has become increasingly important as companies look for ways to deploy AI models more efficiently. The reported valuation of roughly $4 billion would make the startup one of the larger AI software acquisitions disclosed this year, if completed.
The talks come at a time when the AI sector is seeing a wave of fundraising, dealmaking and strategic repositioning across the technology industry. Investors have poured capital into firms that build AI models, cloud services and supporting tools, while established tech companies have moved to secure capabilities that can help them compete in the fast-growing market.
For Qualcomm, an acquisition of Modular would fit into that broader trend. The company has been seeking opportunities to strengthen its role in AI across devices, edge computing and related enterprise applications. A deal for a software company like Modular could help Qualcomm deepen its involvement beyond silicon and into the software stack that underpins AI systems.
No terms beyond the approximate valuation were disclosed, and it remains possible that the talks could change or fail to result in a deal. Qualcomm and Modular did not immediately comment on the reported negotiations.
If completed, the acquisition would add another sign that major technology companies are increasingly looking to own more of the AI supply chain, from chips and software to deployment tools and infrastructure. That shift has become a defining theme of the industry as companies seek to capture more of the value created by AI adoption.
The reported deal would also come amid a busy period for AI-related transactions, with companies across the sector pursuing partnerships, acquisitions and public-market plans as they try to secure scale and technical advantages.