Google gets option for 12.2B USD Marvell stake in AI chip deal

Marvell has disclosed a deeper custom silicon agreement with Google that gives the search company a warrant to buy up to 58,970,907 Marvell shares at 206.58 USD per share. At that exercise price, the warrant points to a potential stake worth about 12.2B USD if fully vested and exercised.

The filing says the expanded partnership covers custom semiconductor products that attach to Google’s TPU ecosystem. The list includes AI inference accelerators, storage controllers, network interface controllers, memory interface controllers and near-memory compute.

Most of the warrant does not vest automatically. Marvell says the shares vest in 240 equal tranches, with one tranche vesting for each 500M USD in custom products revenue from Google or its affiliates through Marvell’s fiscal 2033. A smaller time-based slice vests over the first year.

The story matters because it shows how strategic AI chip supply is becoming for Big Tech. Google already designs TPUs, but this kind of equity-linked commercial deal gives a supplier a large incentive to dedicate capacity and engineering to Google’s custom hardware roadmap. For the broader AI market, the signal is simple: model competition is increasingly a supply-chain and silicon-partnership game, not only a software race.

Source: Marvell SEC filing; Reuters.