Marvell and Google Expand Custom Silicon Partnership for TPU Ecosystem

Marvell Technology has expanded its partnership with Google to develop custom semiconductor products for various applications within Google's Tensor Processing Unit (TPU) ecosystem. The agreement includes the development of AI inference accelerators, storage controllers, network interface controllers, memory interface controllers, and near-memory compute.

As part of the deal, Marvell has issued a warrant to Google that allows it to purchase up to approximately 59 million shares at $206.58 per share, potentially valuing the stake at around $12.2 billion, according to an SEC filing from Marvell. The custom silicon programs covered by the agreement will be developed over several years.

The warrant vests based on cumulative custom product revenue, with one tranche vesting for every $500 million in purchases made by Google between Marvell's third quarter of fiscal 2027 and the end of fiscal 2033. The warrant is exercisable until August 18, 2033.