Alphabet’s Google partnered with Marvell Technology to develop custom silicon for its artificial intelligence infrastructure. The collaboration focuses on creating AI accelerators, storage, and networking chips to support Google's Tensor Processing Units (TPUs).
Marvell issued Google a warrant to purchase up to 58.97 million shares. This stake is valued at approximately $12.18 billion if fully exercised.
Google must meet specific purchasing targets through fiscal year 2033 to exercise most of the warrant. This structure links the potential investment directly to the partnership's performance.
Marvell shares rose more than 11% in premarket trading following the announcement. Shares of Broadcom, Google’s primary custom chip partner, fell over 3%.