Marvell Technology has granted Google a warrant to purchase up to $12.2 billion of its shares, deepening the companies' partnership on custom AI silicon. The warrant covers up to 58.97 million Marvell shares at $206.58 apiece, vesting as Google places chip orders — each $500 million in purchases unlocks a further tranche, with the full amount tied to purchasing targets through fiscal 2033.
The expanded deal covers chips that attach to Google's Tensor Processing Unit ecosystem, including AI inference accelerators plus storage and networking controllers. If Google hits its targets, the arrangement could generate roughly $120 billion in chip sales for Marvell and make Google the company's fifth-largest investor.
Marvell shares jumped as much as 14% on the news, while Broadcom — Google's other major custom-chip partner — fell more than 5% on fears of new competition. Morningstar analyst William Kerwin called it "a big win for Marvell," framing it as an expansion of Google's supplier base rather than a displacement of Broadcom. The deal also fits a broader pattern of AI infrastructure tie-ups, echoing Nvidia's $105 billion backstop for an OpenAI data center and AMD's recent chip agreement with OpenAI — arrangements that have drawn scrutiny over circular investment structures in the AI chip market.