Google Lands Stock Warrants in Custom Chip Deal with Marvell

Alphabet's Google has secured stock warrants from Marvell Technology as part of a custom chip supply agreement. The deal, which was signed on July 29, covers artificial intelligence inference accelerators and storage controllers built around Google's in-house TPU chips.

The warrant gives Google the right to profit from Marvell's stock growth while making discretionary purchases. It allows Alphabet to buy nearly 59 million Marvell shares at a fixed price of $206.58, representing about 7% of the company.

This structure is similar to AMD's deal with OpenAI, where AMD issued a warrant for up to 160 million shares in exchange for supplying graphics processing units. The Google-Marvell version has a real exercise price and no gigawatt commitments, but it shifts leverage to buyers in the same way.