Marvell and Google Expand Custom AI Chip Collaboration; Marvell Gets $12.2 Billion Warrant, Shares Surge 12%

Marvell Technology and Google announced an expanded collaboration on custom artificial intelligence chip development, accompanied by a warrant arrangement. According to a regulatory filing submitted by Marvell on August 19, Google will have the right to purchase up to 58,909,070 Marvell shares at $206.58 per share, with a total value of approximately $12.2 billion. Within the first year after the warrant is exercised, approximately 1.4 million shares will vest in equal quarterly installments. The remaining shares will vest in batches based on revenue generated from the collaboration products, with each $500 million in related revenue triggering a batch, covering the period from Marvell's fiscal third quarter of 2027 to the end of fiscal 2033.

The collaboration scope covers multiple custom chip projects within Google's TPU ecosystem, including AI inference accelerators, storage controllers, network interface controllers, memory interface controllers, and near-memory computing. Marvell stated in the filing that the expanded collaboration involves a series of custom silicon projects related to the TPU ecosystem. Following the news, Marvell shares rose more than 12% in premarket trading, while Broadcom, a major TPU partner, saw its shares decline 3% in premarket trading.