Google has signed an agreement with semiconductor design company Marvell for the development and supply of custom AI chips. Marvell also granted Google warrants for about 59 million common shares. If Google exercises all of the rights, the investment value would reach $12.18 billion. The deal calls for phased warrant grants based on Google’s purchases from Marvell, with most of the rights unlocked in increments tied to every $500 million of product purchases. Marvell said it will supply custom chips for Google, including AI inference accelerators, storage and networking interfaces, memory interface controllers and near-memory computing products. Google previously worked mainly with Broadcom on TPU and AI infrastructure chips under a joint development agreement that runs through 2031, and the new deal does not replace that arrangement.
Google has signed a custom AI chip development and supply agreement with semiconductor design company Marvell. As part of the deal, Marvell also granted Google warrants for about 59 million common shares.
If Google exercises all of the rights, the investment value would reach $12.18 billion.
The agreement gives Google the warrants in stages, based on how much product it buys from Marvell. Most of the rights will vest gradually for every $500 million in purchases.
Marvell said that if Google meets all of the purchasing conditions, the company could generate as much as $120 billion in cumulative revenue.
Marvell will supply a range of custom chips for Google, including AI inference accelerators, storage and networking interfaces, memory interface controllers and near-memory computing products.
Google has previously worked mainly with Broadcom on TPU and AI infrastructure chips. The two companies have a joint development agreement that runs through 2031, and the Marvell deal does not replace it. (ZDNet)
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