Marvell Technology announced a deal that permits Google to acquire up to 58,970,907 shares at a price of $206.58 each, totaling $12.2 billion. This agreement is part of a broader partnership focused on developing custom chips, particularly for artificial intelligence applications.
The deal is tied to performance targets extending through the 2033 fiscal year and will include products related to the tensor processing unit ecosystem, such as AI inference accelerators and network interface controllers.
This collaboration comes as Google and other major tech companies, including Amazon, Meta, and Microsoft, seek to create custom silicon chips to reduce reliance on Nvidia's offerings. Notably, Marvell's stock had previously risen in April due to reports of a chip deal with Google for AI workloads.
In contrast, Broadcom, which has historically partnered with Google on custom chips, saw its stock decline by about 5% following this announcement, indicating a potential shift in Google's chip strategy away from Broadcom