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 byReuters, 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)
