Marvell's Google Deal Unlocks Up to $120 Billion in Potential Revenue
Marvell (MRVL) shares are surging after the company revealed an expanded partnership with Google (GOOGL), which includes a comprehensive range of custom silicon programs for artificial intelligence (AI) inference accelerators, storage controllers, network interface controllers, memory interface controllers, and near-memory compute.
The deal also includes a warrant to purchase up to 59 million shares of MRVL stock at an exercise price of $206.58 per share, with some vesting quarterly over the next year and others vesting based on Marvell's custom products revenue.
According to the filing, Marvell Custom Products is expected to reach a significant milestone of $500 million in revenue, triggering further vesting. The math suggests that if Google meets this target, it could be worth up to $120 billion to Marvell over the next few years.