Qualcomm has announced its acquisition of Silicon Valley chip startup Modular for nearly $4 billion. The deal comes nine months after Modular raised $250 million at a valuation of $1.6 billion, underscoring the growing importance of AI and flexible software platforms in the tech industry.

The acquisition is significant as Qualcomm looks to expand beyond its traditional mobile chip market into diverse compute environments. CEO Cristiano Amon highlighted Qualcomm’s ambition for developer-friendly, horizontal platform solutions that can run across a variety of devices.

Modular’s unique coding language enables developers to write AI software for different chips without rewriting code, making it an attractive addition to Qualcomm’s portfolio. Founded by Chris Lattner and Tim Davis, both formerly of Google, Modular aimed to create a unifying layer that optimises cloud businesses’ use of GPUs and CPUs.

The move reflects Qualcomm’s strategic push into the data center market through acquisitions like Ventana Micro Systems, as well as custom ASIC designs. With big names like ByteDance reportedly already using their tech, Modular could provide Qualcomm with a competitive edge in this rapidly evolving sector.