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Qualcomm’s Acquisition Watch: Can Modular Help It Escape Handset Dependence?

Qualcomm Incorporated is reportedly in advanced talks to acquire Modular Inc., an artificial intelligence infrastructure software company, in a transaction valuing the startup at about $4 billion. Reuters, citing Bloomberg, reported that the deal could be announced in the coming weeks and would represent a sharp step-up from Modular’s prior valuation of about $1.6 billion. The timing is important. Qualcomm is already trying to reposition itself beyond smartphones, with management highlighting agentic AI, data center custom silicon, automotive, IoT, robotics, personal AI devices and 6G as major growth vectors during its Q2 FY2026 earnings call. The company reported $10.6 billion in quarterly revenue, record automotive revenue, IoT growth and a planned December-quarter shipment for a custom silicon engagement with a leading hyperscaler. Acquiring Modular could strengthen the software layer behind that diversification push.