$12.2 Billion Option: Alphabet's Bid for Control in AI Chip Market

Alphabet (GOOGL) has deepened its partnership with Marvell Technology through an option arrangement that could reach up to $12.2 billion in Marvell shares.

The value of this option is tied to the volume of AI chip business Google directs to Marvell across inference, networking, storage, memory, and near-memory computing.

This collaboration aims to develop custom AI hardware that can sit alongside Alphabet's existing solutions and provide alternatives to other large chip suppliers.

The development highlights Alphabet's efforts to strengthen control over its AI infrastructure stack and supplier relationships as AI workloads increase across its platforms.