Google has received a warrant giving it the right to buy up to 58.97 million Marvell shares at $206.58 each, potentially worth $12.2 billion if fully exercised. The warrant is tied to Google’s purchases from Marvell, meaning more of the equity rights vest as the chip partnership reaches agreed business targets.
Will Google announce another major custom AI chip supplier by the end of 2026?
The arrangement comes as Google expands its custom AI chip partnership with Marvell, a deal that could generate as much as $120 billion in revenue for Marvell through fiscal 2033.
Marvell will help develop Google’s custom AI silicon and related technologies, giving Google another major supplier as demand for its in-house AI infrastructure grows. The expansion also puts Marvell in closer competition with Broadcom, which has long been a key partner in Google’s custom chip programs.
The structure effectively links Google’s chip spending with equity upside in its supplier: Marvell gains access to a potentially massive long-term customer, while Google can benefit financially if the partnership helps drive Marvell’s growth.
Marvell shares jumped nearly 8% following the announcement, while Broadcom fell more than 5%.
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