Qualcomm weighs Modular deal to expand AI software push

Qualcomm is reportedly in advanced talks to acquire Modular Inc., an AI infrastructure software company, as it looks to build a broader role in AI beyond wireless and handsets. A deal would give Qualcomm a software platform to pair with its AI hardware for data centers and edge devices, potentially making it easier for developers to build and run AI workloads on Qualcomm chips.

The move would fit with Qualcomm’s recent Dragonfly data center product announcements and its expanded Hugging Face partnership, where developers are expected to access Modular’s tools through the Hugging Face ecosystem. Combined with work involving Meta and other partners, Modular’s infrastructure software could help Qualcomm offer a more integrated path from model development to deployment across phones, PCs and data center racks.

The potential acquisition would also raise execution risk. Qualcomm would need to integrate a software-heavy business while ramping AI data center efforts and managing large customer relationships. Investors are expected to watch whether a deal is confirmed, the purchase price, and how management connects Modular’s tools with existing Dragonfly and edge AI plans.