Marvell Stock Jumps 10% on Google Chip Deal Worth Up to $12.2 Billion

Marvell Technology's shares rose nearly 10% after it was revealed that Google can purchase up to $12.2 billion in Marvell stock as part of their partnership on custom chips for artificial intelligence workloads.

The deal, which is tied to purchasing targets through the 2033 fiscal year, will allow Google to buy up to 58,970,907 shares at $206.58 each. This agreement builds on an existing partnership between Marvell and Google, which includes products that 'attach to the tensor processing unit ecosystem,' such as AI inference accelerators and storage and network interface controllers.

This news comes after a report in April revealed a chip deal between Marvell and Google for artificial intelligence workloads. The Information reported at the time that the deal would include a TPU and memory processing unit, highlighting the growing competition among tech giants to develop custom silicon chips for AI workloads.