Qualcomm gains AI edge with Modular acquisition

Qualcomm has reached an agreement to acquire artificial intelligence (AI)-native software stack provider Modular.

Modular provides an open, AI-native software stack that enables artificial intelligence to run efficiently across hardware architectures. The company’s unified platform runs models across central processing unit, graphics processing unit, neural processing unit and custom application-specific integrated circuit architectures without rewrites for each accelerator.

For developers and enterprises, this is said to mean building once, deploying across any environment with lower total cost of ownership. Modular also believes it is supported by an open, industry-friendly, supplier-neutral developer community committed to improving the portability and efficiency of AI infrastructure. 

Explaining the reason for its acquisition, connected comms tech platform provider Qualcomm said addressing the pressures and demands faced by companies requires more than hardware. It added that developers need software that connects system-level optimisation with heterogeneous, disaggregated compute, turning silicon performance into reliable and efficient AI services across accelerators, environments and use cases.

Qualcomm believes the acquisition will provide a software foundation for generative and agentic AI across datacentre and edge environments supporting more efficient inference. This datacentre strategy encompasses orchestration and deployment in distributed AI systems, while strengthening relationships with model creators, developers, hyperscalers and enterprises.

Qualcomm also expects the deal to strengthen its Technologies division’s ability to deliver a more optimised AI compute layer across a broad range of platforms and use cases.

Specifically, by combining what it claims is its own silicon leadership with Modular’s software expertise, Qualcomm insists the Technologies division will be well positioned to help customers move AI into production from device to cloud, with systems that are faster, more efficient and easier to scale.

In a keynote session at the CES 2024 event, Qualcomm CEO Cristiano Amon observed that the overarching strategy for the company would be to tap into the growing world of AI in local devices. He added that the company was undergoing a fundamental shift in how it sees itself, from a wireless communication company to being a connected processor and artificial intelligence firm.

Fast forward two years, and describing the latest part of this strategy, Amon said the Modular acquisition marks a pivotal moment not just for the company, but for the AI industry at large.

“As agentic AI scales across datacentres and edge environments, the industry is moving toward disaggregated, multi-vendor architectures that demand a more open and modern software foundation,” he said.

“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. With Modular, we’re accelerating that shift, combining our scale and energy-efficient datacentre technologies with an open ecosystem approach to help drive the next chapter of AI.”

Modular co-founder and CEO Chris Lattner said: “Modular was founded on the belief that AI needs a more open and efficient software foundation that can span diverse hardware and deployment environments.

“Joining Qualcomm gives us the scale and platform reach to accelerate that mission,” he added. “Together, we can make AI development more accessible and performant for developers, strengthen portability across hardware, and help grow an open ecosystem that broadens participation and speeds innovation. We are excited to continue advancing our software platform as part of Qualcomm’s broader strategy from edge to cloud.”

The transaction is expected to close in the second half of 2026, subject to customary closing conditions and applicable regulatory approvals.