Qualcomm said it has agreed to acquire AI software company Modular in an all-stock transaction valued at about $3.92 billion based on its Tuesday closing share price, issuing up to 19.2 million common shares to Modular’s equity owners. The deal, expected to close in the second half of 2026 subject to customary conditions and regulatory approvals, is intended to strengthen Qualcomm’s generative AI and agentic AI software foundation for data center and edge environments. At its investor event, Qualcomm also detailed a broader push into AI data center chips, unveiling the Dragonfly C1000 CPU, saying Meta will use it when production begins in 2028, and disclosing two custom silicon deals with hyperscalers. Bank of America estimated Qualcomm’s data center expansion could generate roughly $2 billion to $5 billion in annual revenue by fiscal 2027-2028.