Marvell Technology said on Wednesday it granted Google an option to acquire a stake worth up to $12.2 billion, exercisable through the purchase of up to 58.97 million shares at $206.58 each. If fully exercised, the warrant would make Google Marvell’s fifth-largest investor.
The arrangement is tied to a broader partnership under which Marvell will develop custom chips for Google, including processors for AI models, data storage and networking infrastructure. The deal could generate roughly $120 billion in revenue for Marvell through fiscal 2033, contingent on Google meeting specified performance targets.
Marvell’s shares surged nearly 8% following the announcement, while Broadcom, Google’s previous primary custom chip partner, fell more than 5%. Alphabet’s stock was little changed, Nvidia slipped 1.01% and AMD declined 3.69%.
The move reflects growing demand for in-house AI chips as companies seek alternatives to Nvidia’s graphics processors and solutions optimized for inference workloads. Google recently restructured its AI division, shifting oversight toward executives with closer ties to Google Cloud, underscoring the strategic importance of custom silicon.
The arrangement follows recent high-profile deals in the AI chip sector. In October, AMD agreed to supply OpenAI with AI chips worth tens of billions of dollars annually, alongside an option for OpenAI to acquire up to roughly 10% of AMD. Separately, Nvidia committed to a $105 billion backstop for an OpenAI data-center project in Ohio.
Morningstar analyst William Kerwin characterized the Marvell-Google deal as a positive development for Marvell, noting it expands Google’s sourcing options rather than displacing Broadcom outright.
