US EditionWhy Marvell Wants To Buy Celestial AI
Marvell aims to enhance its AI and data-center capabilities with a deal potentially exceeding $5 billion, leveraging recent divestiture proceeds for strategic growth.
- On Dec 1, Marvell Technology entered advanced talks to acquire Celestial AI in a cash-and-stock deal that could exceed $5 billion, with a deal announcement possible Tuesday, Reuters said.
- Amid a pivot to accelerated computing and optics, Marvell has reshaped its business, growing data center revenue from one-third to nearly three-quarters and using $2.5B divestiture proceeds for AI-focused acquisitions.
- Celestial, backed by an AMD unit, has raised $250 million for a total of $515 million and develops a 'photonic fabric' with deal earnouts tied to $2 billion in revenue.
- The acquisition would broaden Marvell's addressable market to companies spending hundreds of billions on AI infrastructure, with the first application linking systems built around large XPUs and the deal expected to close early next year.
- With a $78.54 billion market cap, Marvell competes against larger rival Broadcom, and its stock rose 2.54% on Tuesday after a report of investor enthusiasm.
18 Articles
18 Articles
Marvell Technology buys Celestial AI in $3.25 billion deal, shares jump nearly 8% — Inside the acquisition
The acquisition of Celestial AI is part of the company's strategy to capture more of the runaway spending on artificial intelligence computing. Marvell Technology shares jumped in extended trading.
Marvell to buy chip startup Celestial AI for $3.25 billion, bullish on growth next year
SAN FRANCISCO, Dec 2 (Reuters) - Chipmaker Marvell Technology said on Tuesday it will buy semiconductor startup Celestial AI in a deal worth $3.25 billion and gave a bullish forecast for its next fiscal year.
Marvell Technology (MRVL) Q3 Earnings Coverage
Live Updates More News From Marvell 2 minutes ago Live Marvell stock is now down 6.83% after hours. The company also announced more deals in a press release after earnings. Here are the key details: Marvell paired its record Q3 print with a major strategic swing, agreeing to acquire Celestial AI in a transaction valued at about 3.25 billion dollars upfront, plus an earnout tied to ambitious revenue milestones. The…
Marvell in advanced talks to buy Celestial AI in multi-billion-dollar deal: The Information
Marvell Technology is reportedly close to buying Celestial AI in a multibillion-dollar cash-and-stock deal that may exceed $5 billion. The move would boost Marvell’s chip and photonics capabilities amid rising demand for AI computing power. Celestial AI, backed by AMD and advised by industry leaders, has raised over $500 million to date.
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