Marvell, Google Expand AI Chip Partnership

Marvell Technology has entered into an expanded commercial agreement with Google that centers on developing custom semiconductor products for Google’s Tensor Processing Unit (TPU) ecosystem. The collaboration covers a range of components designed to work alongside Google’s TPU infrastructure, including AI inference accelerators, storage controllers, network interface controllers, memory interface controllers and near-memory compute solutions.

The broadened relationship strengthens Marvell’s role in supplying advanced chip technologies for large-scale AI and cloud workloads. By aligning its custom products with Google’s TPU ecosystem, Marvell is positioned to participate more deeply in the build-out of specialized hardware supporting AI applications.

As part of the agreement, Google received a warrant that provides the right to purchase up to nearly 59 million Marvell shares at an exercise price of $206.58 per share. The warrant is exercisable until August 18, 2033, giving Google a long time frame in which it can choose to convert the warrant into equity.

If the warrant were fully exercised at the stated price and share amount, the total value of the shares would be about $12.18 billion. This structure links a significant potential equity stake in Marvell to the success and scale of the companies’ custom chip programs over the coming years.

A portion of the warrant shares vests within the first year of the deal, while the majority is tied to performance-based milestones. The remaining shares are scheduled to vest in 240 tranches, with one tranche vesting for each $500 million in revenue that Marvell recognizes from custom products sold to Google and its affiliates through the end of Marvell’s fiscal 2033.

The disclosure of the expanded partnership and the warrant triggered a strong positive reaction in Marvell’s shares. The stock rose more than 10% in premarket trading after the filing became public, reflecting investor focus on the scale and duration of the Google relationship.

The combination of a long-dated warrant and revenue-linked vesting aligns Google’s potential equity ownership with Marvell’s performance in supplying custom chips for Google’s AI infrastructure. It also underscores the importance of custom semiconductor solutions and TPU-adjacent technologies in supporting next-generation AI workloads at hyperscale data centers.