Qualcomm inks deal for AI startup Modular to bolster software stack, data center buildout

Visitors stand at the Qualcomm kiosk at Bharat Mandapam, one of the venues for AI Impact Summit, in New Delhi, India, February 18, 2026. Bhawika Chhabra | Reuters Qualcomm on Wednesday said it's buying infrastructure startup Modular to boost its artificial intelligence software capabilities amid the data center buildout. The deal will better position Qualcomm in the inference market and help companies run AI more efficiently. "We believe the future belongs to developer-friendly, horizontal platforms that can run across diverse compute environments and give customers real choice in how and where they deploy AI," said Qualcomm CEO Cristiano Amon in a release. The deal is expected to close in the second half of 2026. Qualcomm didn't provide the financials of the deal. Bloomberg reported early this week that Qualcomm and Modular were in advanced talks for a deal valued at nearly $4 billion. Reuters calculations valued the acquisition at $3.92 billion. Businesses are on the hunt for ways to optimize AI use as token costs skyrocket, hampering enterprise budgets. At the same time, Qualcomm is looking to expand its position in the data center market as AI's skyrocketing growth spikes demand for infrastructure capable of processing large swaths of data. The company is holding an investor day on Wednesday. Tune in at 3:30 p.m. ET as Qualcomm CEO Cristiano Amon joins CNBC TV to talk about the acquisition and other news from the company's investor day. …