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Marvell gives Google option to buy $12.2 billion stake in custom chip deal
The warrant makes Google Marvell’s fifth-largest investor if fully exercised, and most of it vests only as Google meets purchasing targets through fiscal 2033.
- On Wednesday, Marvell Technology disclosed a warrant allowing Alphabet-owned Google to purchase up to $12.2 billion in stock, tied to a broader agreement to develop custom AI chips for the hyperscaler.
- Seeking alternatives to Nvidia, Google aims to secure custom tensor processing units as Big Tech companies expect to spend more than $700 billion on AI infrastructure this year, up from $400 billion last year.
- Marvell shares surged 13% following the disclosure, while Broadcom—which has an existing long-term supply agreement with Google through 2031—saw its stock decline 3% on the same day.
- The warrant grants Google the right to buy nearly 59 million shares, with most of the stake vesting only as the tech giant generates revenue from Marvell's custom silicon through fiscal 2033.
- This agreement potentially redraws the supplier map for Google's next-generation AI racks, with investors monitoring Marvell's August 27 earnings report for specific customer booking commentary and warrant vesting clarifications.
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13 Articles
13 Articles
Marvell Technology Rockets 13% on $12.2B Google Warrant; Broadcom Falls 3%, Alphabet Unmoved
A massive warrant disclosure just reshuffled who builds Google's AI chips, sending one semiconductor giant surging while punishing the longtime incumbent with a 3% drop before markets had time to blink.
·Lakewood, United States
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Marvell gives Google option to buy $12.2 billion stake in custom chip deal
·London, United Kingdom
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Google gets option to buy $12.2 billion Marvell stake in major AI chip partnership
Marvell Technology has granted Alphabet's Google a warrant to acquire a stake valued at approximately $12.18 billion, deepening the companies' collaboration on custom artificial intelligence chips.The announcement sent Marvell shares up more than 11% in premarket trading, while rival custom-chip supplier Broadcom fell more than 3%.The agreement centres on the growing demand for custom AI processors as technology companies seek alternatives to Nv…
·Dubai, United Arab Emirates (the)
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