Google enters partnership with Marvell for AI chips
In a bid to capitalise on the rise of artificial intelligence, Marvell Technology has entered into a partnership to support Google in developing specialised semiconductors. As part of the agreement, the search giant is given the option to acquire a significant equity stake in Marvell, with a potential total value of $12.2 billion (€10.5 billion).
The collaboration focuses on a wide range of hardware and technical solutions that are compatible with Google’s Tensor Processing Units (TPUs). These in-house chips have become increasingly important as tech companies look for cost-effective alternatives to Nvidia’s GPUs and for hardware that is specifically optimised for AI model inference.
The financial details of the agreement show that Google holds a warrant for up to 58.97 million shares, at a price of $206.58 each. If that option is fully exercised, Google would become Marvell’s fifth-largest shareholder. However, the possibility of exercising that warrant is tied to specific procurement milestones that Google must meet through the 2033 financial year.
The move coincides with a massive surge in spending across the sector: large technology companies are expected to invest more than $700 billion (€600 billion) in AI infrastructure this year, a substantial increase from the $400 billion (€342.7 billion) previously spent.
Despite the new alliance, Marvell continues to compete with Broadcom, which has a long-term contract to supply Google with next-generation AI components and custom-made chips through to 2031.
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