Marvell Technology grants Google warrants for custom AI chip partnership

Marvell Technology has entered into a major partnership with Google to develop custom artificial intelligence chips, including AI inference accelerators, storage solutions, and networking technologies. As part of the agreement, Marvell granted Alphabet a warrant to acquire up to approximately 58.97 million shares of its stock at an exercise price of $206.58 per share.

The vesting of these shares is tied to Google’s revenue generation from Marvell’s custom silicon. Specifically, the remaining shares will vest in 240 installments based on the amount of custom product revenue Google generates from Marvell’s fiscal year 2027 third quarter through the end of fiscal year 2033.

This collaboration aims to expand the capabilities of Google’s proprietary Tensor Processing Units (TPUs) and provides an alternative to Nvidia’s dominant GPU market position. Following the announcement, Marvell’s shares saw significant gains in premarket trading, while competitor Broadcom experienced a decline.