Marvell Offers Google Option to Buy $12.2 Billion Stake as Part of Custom AI Chip Deal
Marvell Technology has entered a deal with Google, offering the tech giant an option to purchase up to $12.2 billion worth of shares in exchange for developing custom artificial intelligence chips tailored for Google's needs. The agreement is part of Big Tech’s broader strategy to invest directly into suppliers supporting their AI infrastructure expansion. Marvell's stock rose nearly 8% following the announcement, while Broadcom—Google’s previous main chip partner—fell over 5%. If all targets are met, the deal could generate around $120 billion in revenue for Marvell through fiscal year 2033. The partnership highlights growing demand for custom chips like Google's Tensor Processing Units (TPUs), as companies seek alternatives to expensive solutions from rivals such as Nvidia. The move also reflects a strategic shift within Google, where AI infrastructure and cloud computing are becoming increasingly central under recent leadership changes in the company’s AI division.
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Topics: AI Big Tech partnerships custom chips semiconductors