Marvell Technology and Google expanded their partnership to develop custom AI-focused chips. The collaboration targets silicon for Google’s TPU ecosystem, including AI inference accelerators and storage controllers. Marvell shares jumped in pre-market trading following the announcement. Shares of competitor Broadcom declined.
Marvell issued Google a warrant to purchase up to 58.97 million common shares. The exercise price for the warrant is $206.58 per share. The total value of the stake could reach approximately $12.2 billion if fully exercised.
Warrant vesting is tied to time-based milestones and Google’s future purchases of Marvell products. This agreement links the equity option directly to the commercial success of the partnership.