Overview
- Reports say Qualcomm is negotiating to acquire Modular for about $4 billion while separately holding talks to buy AI chip designer Tenstorrent for $8–$10 billion.
- Neither transaction has been announced and both Qualcomm and Modular declined to comment, with sources saying a formal announcement could come in the coming weeks.
- Qualcomm shares pulled back after the reports, reversing part of a recent multi-month rally driven by investor expectations about the company's AI strategy.
- Modular was valued at $1.6 billion after a September 2024 funding round that raised $250 million, so a roughly $4 billion price would be more than a 2.5x jump in under two years.
- If completed, the deals would combine Modular's cross-hardware AI software and Tenstorrent's RISC-V accelerators to create a full AI stack, a move that could raise integration, manufacturing and regulatory questions and will be closely watched at Qualcomm's upcoming investor presentation.