Qualcomm agreed to acquire AI software company Modular for approximately $3.9 billion, issuing up to 19.2 million shares of its common stock. The deal, valued at $3.92 billion based on Qualcomm's Tuesday closing price of $204.13, represents a significant push into artificial intelligence infrastructure.

Modular develops software that optimizes AI performance across different hardware architectures, reducing deployment costs for developers. This technology helps companies move AI from development to production more efficiently, spanning devices to cloud environments. Qualcomm's semiconductor expertise combined with Modular's software creates a more complete AI solution stack.

The transaction will close through a private placement in the second half of this year. Qualcomm's stock-based payment structure reflects both companies' valuation alignment and the strategic importance of retaining Modular's talent and technology within the semiconductor giant's ecosystem.

The acquisition positions Qualcomm to compete more aggressively in the AI chip market, where software optimization increasingly matters as much as raw processing power. This move follows broader industry trends toward integrated hardware-software AI solutions.