Marvell grants Google $12.18B warrant

Marvell Technology has granted Alphabet's Google a warrant to purchase up to 58,970,907 shares of Marvell common stock at $206.58 per share, valued at approximately $12.18 billion if fully exercised. The warrant is part of an expanded partnership to develop custom AI chips for Google, including AI inference accelerators, storage controllers, network interface controllers, memory interface controllers, and near-memory computing technologies. The warrant vests over time, with a small portion in the first year and the remainder tied to revenue generated from Marvell's custom products through fiscal 2033. The deal strengthens Google's TPU ecosystem and provides Marvell with a major vote of confidence from a top cloud provider, potentially bringing around $120 billion in revenue through fiscal 2033 if targets are met. Marvell shares jumped over 10% in premarket trading, while Broadcom, Google's existing custom chip partner, fell over 3%. The agreement reflects the surging demand for custom AI silicon as companies seek alternatives to Nvidia's GPUs.