Qualcomm Inc (NASDAQ:QCOM) is in advanced discussions to acquire Modular Inc in a transaction that could value the artificial intelligence company at about $4 ‌billion, Reuters News reported Monday.

Qualcomm expands AI exposure

An announcement is expected in the coming weeks, the report added, citing Bloomberg.

Modular raised $250 million in a funding round in September that valued the company at $1.6 billion.

Qualcomm and Modular did not immediately respond to Benzinga’s request for comment.

What is Modular?

Founded in 2022 by Chris Lattner and Tim Davis, who met at Google, Modular was formed as they were “frustrated by AI’s fragmented infrastructure”, according to the company’s website.

The company develops software infrastructure that helps companies build and deploy AI applications across different hardware and cloud platforms through a unified framework.

Qualcomm wants more AI

The reports on the acquisition come days after The Information reported that Qualcomm was in talks to acquire AI chip startup Tenstorrent for $8 billion to $10 billion, a deal that would expand the company’s AI chipmaking capacity. 

Price Action: Shares of QCOM closed 1.86% lower on Monday at $221.90, and fell further 0.72% in after-hours trading.

Benzinga edge rankings indicate QCOM has a Momentum score in the 89th percentile and Growth score in the 43rd percentile.

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