UPDATE 1-Qualcomm to buy AI startup Modular

NVIDIA Corporation
QUALCOMM Incorporated

NVIDIA Corporation

NVDA

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QUALCOMM Incorporated

QCOM

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June 24 (Reuters) - Qualcomm QCOM.O said on Wednesday it would buy AI startup Modular for an undisclosed sum, as the chipmaker looks to diversify beyond its core smartphone business.

The company was in advanced discussions to acquire Modular in a deal valuing it at about $4 billion, Bloomberg News reported on Monday.

Buying Modular pits Qualcomm against CUDA, the software platform that has helped underpin Nvidia's NVDA.O AI dominance by tying millions of developers to the $5 trillion company's chips.

Qualcomm has been seeking a larger foothold in the data-center market as demand for generative AI surges, and is already targeting the market with processors for data centers and other AI chips with shipments planned by the end of the year.

The deal is expected to close in the second half of this year.




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