Google Secures Marvell Chip Deals with Massive Share Option

Marvell Technology has given Google the right to buy up to $12.2 billion of its shares in exchange for custom chip orders, according to a regulatory filing. This deal is part of Google's effort to control its AI supply chain and reduce its dependence on Nvidia.

The warrant allows Google to buy 58,970,907 Marvell shares at $206.58 each, with nearly 1.4 million vesting in the first year. The rest come in tranches tied to every $500 million of chips Google buys over the next seven years.

William Kerwin, an analyst at Morningstar, called this a 'big win' for Marvell, but noted it's more about expanding the market share rather than displacing Broadcom.