Marvell, Google ink $12B AI chip share deal

Marvell offers Google a $12.18B share option tied to AI chip purchases through 2033, boosting Marvell’s value and intensifying competition with Broadcom.

Marvell Technology has expanded its partnership with Google to develop custom artificial intelligence chips. As part of the agreement, Google has the option to acquire up to 58.97 million Marvell shares at $206.58 each, representing a potential investment of $12.18 billion. Most of these shares are contingent on Google meeting specific targets for purchasing Marvell’s custom products, with tranches linked to $500 million revenue milestones through fiscal year 2033. This structure incentivizes ongoing collaboration and aligns both companies’ interests in AI chip innovation. If exercised in full, the deal would make Google Marvell’s fifth largest investor. The announcement underscores the rising demand for AI-specific chips as companies seek alternatives to Nvidia. Following the news, Marvell’s shares rose 7–12%, while Broadcom, another Google supplier, fell over 3%, reflecting heightened competition.