Google is expanding its AI-chip strategy: chipmaker Marvell is granting Google the right to buy up to $12.2 billion of its shares – in exchange for chip orders. The deal is seen as a vote of confidence and sent Marvell’s stock higher.
A stock option in exchange for chip orders
Specifically, Google receives a warrant on almost 59 million Marvell shares at $206.58 each. The shares vest over time – tied to every $500 million of chips Google buys from Marvell.
Chips for Google’s AI infrastructure
The deal covers technology around Google’s in-house TPU accelerators: processors that run AI models, manage data storage and move information across networks. Over its lifetime it could bring Marvell roughly $120 billion in revenue through fiscal 2033, making Google the fifth-largest Marvell investor.
A shift in the chip market
Marvell’s stock jumped around 8 percent. The loser is rival Broadcom – so far Google’s main partner for custom chips – whose shares fell more than 5 percent.
