Qualcomm to buy AI startup Modular for $4 billion in AI software push
· CNA · JoinRead a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST
June 24 : Qualcomm said on Wednesday it would buy AI startup Modular in an all-stock deal valued at nearly $4 billion, gaining access to software that runs AI models across chips without having to write code for each processor.
Buying Modular pits Qualcomm against CUDA, the software platform that has helped underpin Nvidia's AI dominance by tying millions of developers to the $5 trillion company's chips.
As part of the deal, Qualcomm expects to issue up to 19.2 million shares of its common stock to Modular's equity holders.
The transaction is valued at $3.92 billion, according to a Reuters calculation based on Qualcomm's last closing price.
CNA Games
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Show More
Show Less
Qualcomm has been seeking a larger foothold in the data-center market as demand for generative AI surges, and is already targeting the market with processors for data centers and other AI chips with shipments planned by the end of the year.
Modular's software is primarily used to run, or "infer", AI models, a market that has emerged as the latest battleground for chipmakers as Nvidia looks to ward off competitors that are selling custom chips developed for in-house use.
The startup has positioned itself as a neutral software layer for AI computing, supporting chips from Nvidia, AMD and other vendors.
"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," Qualcomm CEO Cristiano Amon said.
The deal, expected to close in the second half of this year, comes as Qualcomm pushes deeper into AI and data-center markets to reduce its reliance on smartphone chips, which generate the bulk of its revenue.
As part of its efforts to branch out, the smartphone chipmaker is also in talks to buy AI chip startup Tenstorrent for $8 billion to $10 billion, The Information reported last week.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app