Marvell Gives Google Option to Buy US$12.2 Billion Stake in Custom AI Chip Deal
- 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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Google is partnering with U.S. semiconductor design company Marvell Technologies to develop custom artificial intelligence (AI) semiconductors. It has also acquired buyout rights to purchase Marvell shares worth up to $12.2 billion (approximately 17 trillion won). Marvell announced on the 19th (local time) that it has signed a development and supply agreement with Google for custom semiconductors, including Tensor Processing Units (TPUs). TPUs a…
Google pits Marvell against Broadcom as it chases AI crown
It's an open secret that the major cloud providers don’t actually design their custom silicon from scratch. There's not much value in reinventing the wheel, so they often outsource big and undifferentiated chunks of chip design to IP houses like Broadcom, Marvell, Arm, and others. Google's partner of choice for its Tensor Processing Units (TPUs) has largely been Broadcom — though the chip giant's involvement was only made public earlier this yea…
Marvell gives Google option to buy US$12.2 billion stake in custom AI chip deal
Marvell Technology will help develop Google’s in-demand custom chips and has offered the search giant the right to buy a potential US$12.2 billion stake, the latest deal in which Big Tech is investing in the suppliers powering its AI build-out.
Marvell, Google Deepen Ties in AI Chip Race | Bloomberg Tech 8/19/2026
Bloomberg’s Ed Ludlow takes a look at the expanded partnership between Marvell and Google for chip development, with Marvell giving the search giant the right to buy as much as $12.2 billion in stock. Plus, SK Hynix plans to buy back $29 billion of shares and return more profits to investors to stabilize its stock after falling more than 50% in two months. And, startup Fuse raises $100 million to bring commercial nuclear fusion energy to the US …
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