Google Wins Option to Invest in Marvell as Chip Demand Surges
Marvell Technology has partnered with Google to develop custom chips for AI applications. The deal grants Google an option to purchase up to $12.2 billion worth of Marvell shares, making it one of the chipmaker's largest investors. This move comes as companies seek cheaper alternatives to Nvidia's graphics processors and technologies better suited for inference.
The new tie-up covers a range of chips and related technologies designed to work with Google's Tensor Processing Units (TPUs), which underpin much of the company's AI infrastructure. Under the agreement, Google received a warrant to buy up to 58.97 million Marvell shares at $206.58 per share.
According to Reuters calculations, if fully exercised, the warrant would be worth around $12.18 billion. This potential stake will make Google one of Marvell's top investors, with the tech giant currently ranking as its fifth-largest investor.