Qualcomm inks deal for AI startup Modular to bolster software stack, data center buildout

Qualcomm has announced a significant acquisition of the infrastructure startup Modular, a strategic move aimed at enhancing its artificial intelligence software capabilities during an ongoing expansion of its data center infrastructure. This acquisition is set to fortify Qualcomm's position in the AI inference market, enabling businesses to implement AI solutions more effectively. Cristiano Amon, CEO of Qualcomm, expressed confidence in the future, stating, "We believe the future belongs to developer-friendly, horizontal platforms that can operate across a variety of computing environments, offering customers real choices in their AI deployment strategies." The transaction is anticipated to finalize in the latter half of 2026, although Qualcomm has not disclosed the financial details of the deal. However, sources indicate that the acquisition is valued at approximately $4 billion, with Reuters estimating the figure at about $3.92 billion. As companies strive to optimize their AI initiatives amidst rising token costs that are straining enterprise budgets, Qualcomm is also keen on strengthening its foothold in the data center market. The increasing demand for robust infrastructure capable of handling vast amounts of data is driving this expansion. Additionally, Qualcomm has scheduled an investor day, where CEO Cristiano Amon will discuss this acquisition and other developments, with the event set to stream live at 3:30 p.m. ET on CNBC+ and the CNBC Pro stream.