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Marvell Technology strikes AI chip deal with Google involving $12.2 billion in warrants
Marvell Technology has entered into a strategic commercial agreement with Google to develop custom semiconductor products designed for Google’s Tensor Processing Unit (TPU) ecosystem. The partnership aims to support AI workloads, including AI inference accelerators, storage controllers, network interface controllers, and memory interface controllers.
As part of the deal, Google has been granted warrants to purchase up to 58.97 million Marvell shares at an exercise price of $206.58 per share. If fully exercised, the total value of the option is approximately $12.2 billion, which could make Google Marvell’s fifth-largest shareholder with an ownership stake of roughly 7.7%.
The vesting of these warrants is tied to specific revenue milestones. Google must generate custom-product revenue in $500 million increments to unlock tranches of shares. The agreement includes a time-based component for the first year and extends through the 2033 fiscal year, with a potential cumulative revenue ceiling of $120 billion. This move is seen as an effort by Google to diversify its AI chip supply chain and reduce reliance on single providers like Broadcom.
Entities
Alphabet · Broadcom · Google · Marvell Technology · Nvidia
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 6 SOURCES] If fully exercised, Google would become Marvell’s fifth-largest shareholder. www.cnnbrasil.com.br · www.cryptopolitan.com · www.fool.com · fr.businessam.be · www.ad-hoc-news.de
- [● 15 SOURCES] The exercise price for the shares is set at $206.58 per share. www.cnnbrasil.com.br · www.cryptopolitan.com · www.finanzen.at · www.fool.com · bitfinanzas.com · +10 more
- [● 15 SOURCES] The partnership focuses on supplying components for Google’s Tensor Processing Unit (TPU) ecosystem. www.cnnbrasil.com.br · www.cryptopolitan.com · www.finanzen.at · www.fool.com · bitfinanzas.com · +10 more
- [● 2 SOURCES] The warrant is non-transferable to parties outside of Google’s controlled affiliates without Marvell’s approval. www.cryptopolitan.com · www.finanzen.at
- [● 15 SOURCES] The total value of the option is approximately $12.2 billion if fully exercised. www.cnnbrasil.com.br · www.cryptopolitan.com · www.fool.com · bitfinanzas.com · fr.businessam.be · +10 more
- [● 3 SOURCES] The warrant remains exercisable until August 18, 2033. www.cryptopolitan.com · www.finanzen.at · www.fool.com
- [● 7 SOURCES] The acquisition of shares is tied to Google meeting specific custom-chip revenue milestones of $500 million increments. www.cryptopolitan.com · www.finanzen.at · www.ad-hoc-news.de · futurumgroup.com · www.it-boltwise.de · +1 more
- [● 15 SOURCES] Marvell Technology granted Google an option to purchase up to 58.97 million shares. www.cnnbrasil.com.br · www.cryptopolitan.com · www.finanzen.at · www.fool.com · bitfinanzas.com · +10 more