- Qualcomm will acquire AI software company Modular in a $3.9 billion stock deal
- The deal involves issuing up to 19.2 million shares to Modular's equity holders
- Modular's software enables efficient AI across various hardware architectures
Qualcomm has agreed to acquire AI software company Modular in a stock deal valued at about $3.9 billion, as the semiconductor giant looks to make artificial intelligence faster, more efficient and less expensive to deploy.
The company said it expects to issue up to 19.2 million shares of common stock to Modular's equity holders as consideration for the transaction. Based on Qualcomm's closing share price of $204.13 on Tuesday, the deal is valued at approximately $3.92 billion.
The shares will be issued through a private placement, Qualcomm said.
Modular develops software that enables AI applications to run efficiently across different hardware architectures, helping developers deploy AI at a lower total cost. Qualcomm said the acquisition will strengthen its ability to help customers move AI workloads into production more quickly, from edge devices to cloud infrastructure.
The transaction is expected to close in the second half of 2026, subject to customary closing conditions.
The announcement comes ahead of Qualcomm's investor day in New York on Wednesday.
Qualcomm shares rose about 1% in premarket trading to $206.25 following the announcement.
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