Qualcomm Inc. has agreed to acquire Modular Inc., a promising AI software startup, for approximately $3.9 billion in stock. The acquisition is intended to make artificial intelligence faster and cheaper for the company's customers.
By adding these software capabilities, Qualcomm aims to support its push into the data center market. The company is looking to expand its position in this sector as demand for AI continues to skyrocket.
Following the announcement and a series of updates regarding its artificial intelligence roadmap, Qualcomm's stock jumped 14% in after-hours trading. In addition to the acquisition, the chipmaker previewed two upcoming AI chips and significantly raised its fiscal 2029 guidance for non-handset revenue.