Google & Marvell Unveil Massive Partnership for Custom AI Chips
Google has entered into a significant partnership with Marvell, which involves developing custom AI chips for Google's TPU ecosystem. The agreement also grants Google an option to purchase up to $12.2 billion in shares of Marvell stock.
The two companies will work together on a range of chips and related technologies that can integrate seamlessly with Google's existing AI infrastructure. This includes AI inference accelerators, storage controllers, network interface controllers, and near-memory compute units.
Google will have the opportunity to purchase up to 58.97 million Marvell shares at $206.58 per share. If fully exercised, this would give Google a stake of approximately $12.18 billion in Marvell, making it the company's fifth-largest shareholder.
The option for Google to purchase these shares is contingent on pre-agreed purchase targets being met through 2033. The first year involves purchasing around 1.36 million shares, with the remainder released in increments tied to cumulative revenue of $500 million from Google's purchases.