Qualcomm Inks Deal for AI Startup Modular to Bolster Software Stack, Data Center Buildout
The deal includes $300 million for Modular employees and brings its entire 150-person team into Qualcomm.
- On Wednesday, Qualcomm president and CEO Cristiano Amon announced the company is acquiring infrastructure startup Modular for just under $4 billion to boost its artificial intelligence software capabilities.
- Qualcomm is expanding its data center presence as demand for AI infrastructure surges, leveraging Modular's proprietary coding language that lets developers write AI software for diverse chips without rewriting code.
- Reuters valued the deal at $3.92 billion, which includes $300 million for Modular's 150 employees, including cofounders Chris Lattner and Tim Davis, who are expected to join Qualcomm.
- Lattner and Davis founded Modular in 2022 after working on Google's TPU chips; Lattner previously led Tesla's Autopilot program and created Apple's Swift language, stating they tackled a "structural" software problem.
- This acquisition strengthens Qualcomm's competitive position against Nvidia's CUDA and AMD's ROCm systems, following the company's acquisition of Ventana Micro Systems last year to bolster its server CPU portfolio.
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19 Articles
Qualcomm acquires AI startup Modular in $4 billion deal to challenge Nvidia’s CUDA dominance - Tech Startups
Qualcomm is making a nearly $4 billion bet that the next big AI fight will not be won by chips alone. The company said Wednesday it plans to acquire AI startup Modular in an all-stock deal valued at about $3.92 […] The post Qualcomm acquires AI startup Modular in $4 billion deal to challenge Nvidia’s CUDA dominance first appeared on Tech Startups.
Qualcomm intends to issue up to 19.2 million new shares for the transaction. Measured at the closing price of Tuesday, the purchase price is close to four billion dollars.
Times of India
The Economic TimesQualcomm to buy AI startup Modular for $4 billion in AI software push
Qualcomm is acquiring AI startup Modular for nearly $4 billion in an all-stock deal. This move aims to enhance Qualcomm's software capabilities for running AI models across various chips without custom coding, directly challenging Nvidia's dominant CUDA platform. The acquisition is part of Qualcomm's strategy to expand its presence in the booming data-center market and reduce its dependence on smartphone chip sales.
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