Qualcomm nearing deal for AI chip startup Modular, Bloomberg News reports

June 22 (Reuters) - Qualcomm ‌is in ​advanced ​discussions to acquire Modular Inc in a transaction valuing the AI chip ‌company at about $4 billion, Bloomberg News ⁠reported on Monday, citing people familiar with the matter.

If ‌completed, the deal would ‌mark a significant step-up from the $1.6 billion valuation Modular secured in a funding round ​just nine months ago.

A global supplier of smartphone chips, Qualcomm has been working ⁠to reduce its reliance on the volatile handset market by ​branching out into fast-growing areas like data center processors and autonomous vehicle chips.

Here ​are a few details:

• ‌A deal could be announced in the coming weeks, though talks could ⁠still fall through or the details could change, Bloomberg said.

• Qualcomm did not immediately respond when ⁠contacted by Reuters, while Modular could not be reached for ​comment.

• Founded in 2022, Modular has raised a total of $380 million to date, including a $250 million in ‌a funding round in September.

• In a separate deal, Qualcomm is ‌in talks to acquire AI chip startup ⁠Tenstorrent for $8 billion to $10 ‌billion, The Information ​reported last week.

(Reporting by Juby Babu in Mexico City; Editing by Vijay ‌Kishore)

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