Marvell Gives Google Right to Buy $12 Billion Stake

Marvell Technology has issued Google a warrant to buy a stake worth around $12.2 billion as part of an expanded deal to develop custom chips for the search giant. They signed the underlying commercial agreement on July 29 and issued the warrant on August 18, according to regulatory filings.

Google received the right to buy up to 58.97 million Marvell shares at $206.58 each through August 2033. If fully exercised, the warrant would be worth approximately $12.18 billion, making Google Marvell's fifth-largest investor. The vesting structure aligns incentives: 1.36 million shares vest in equal quarterly installments during the first year, while the remaining shares unlock across 240 tranches. Crucially, one tranche unlocks for every $500 million in custom-product revenue Google generates through fiscal 2033, tying the ultimate stake size to how much Google actually purchases from Marvell over time.

The partnership covers a broad range of technologies built around Google's Tensor Processing Unit (TPU) ecosystem, which underpins much of its AI infrastructure. Marvell will develop AI inference accelerators, storage solutions, networking components, and memory interface controllers specifically for Google's needs. This comes as Marvell faces competition from Broadcom, which signed a long-term agreement with Google in April to develop and supply custom AI chips through 2031. The market opportunity is substantial, with tech companies expected to spend over $700 billion on AI infrastructure this year alone.