Google Acquires a $12.2B Option in Marvell’s AI Chip Deal
In a significant development in the AI chip industry, Marvell Technology has offered Google (Alphabet) the option to acquire up to 58.97 million shares at $206.58 per share. This potential stake is worth up to $12.2 billion if fully exercised. The agreement, revealed in an SEC filing on August 19, 2026, is linked to purchasing milestones extending through Marvell’s 2033 fiscal year. The shares will vest progressively as Google purchases $500 million worth of chips from the company.
As part of the expanded collaboration, Marvell will create a broad range of custom silicon designed to complement Google’s Tensor Processing Units (TPUs). This includes AI inference accelerators, storage controllers, and network interface controllers. This deal could position Google as Marvell’s fifth-largest investor and potentially generate up to $120 billion in revenue for Marvell if all purchasing targets are achieved.
Following the news, Marvell’s stock rose nearly 10%, while shares in Broadcom — Google’s existing primary chip partner — dropped by over 5%. This deal highlights the escalating competition among Big Tech companies to develop more affordable, faster custom AI chips as alternatives to Nvidia’s costly GPUs. As noted by Morningstar analyst William Kerwin, this represents “a growing pie at Google for new sources” rather than a direct displacement of Broadcom.
Source: Reuters via Yahoo Finance | CNBC