Marvell Technology disclosed in a filing with the U.S. Securities and Exchange Commission that it has expanded its custom semiconductor partnership with Google. The companies signed a commercial agreement on July 29 covering products tied to Google’s TPU ecosystem, including AI inference accelerators, storage controllers, network interface controllers, memory interface controllers, and near-memory computing products. As part of the arrangement, Marvell issued a warrant to Google that allows it to buy up to about 58.97 million shares of Marvell common stock at $206.58 per share, implying a total exercise value of roughly $12.2 billion. Around 1.36 million shares will vest on a time basis during the first year, while the rest will vest in tranches based on future revenue from Google’s purchases of custom products, with one tranche vesting for every $500 million in revenue. The vesting schedule can run through fiscal 2033, with a potential cumulative revenue cap of about $120 billion. After the disclosure, Marvell shares jumped more than 11%, while rival Broadcom shares fell. The report said the move strengthens Marvell’s position in custom chips for hyperscale cloud customers.
Marvell Technology said in a filing with the U.S. Securities and Exchange Commission that it has expanded its custom semiconductor partnership with Google.
The companies signed a commercial agreement on July 29 covering products related to Google’s TPU ecosystem, including AI inference accelerators, storage controllers, network interface controllers, memory interface controllers, and near-memory computing products.
As part of the partnership, Marvell issued a warrant to Google that allows the company to purchase up to about 58.97 million shares of Marvell common stock at $206.58 a share. If fully exercised, the warrant would be worth about $12.2 billion.
About 1.36 million shares will vest on a time basis during the first year. The remainder will vest in batches tied to future revenue from Google’s purchases of custom products, with one batch vesting for every $500 million in revenue. The schedule can extend through fiscal 2033 and corresponds to a potential cumulative revenue ceiling of about $120 billion.
After the disclosure, Marvell shares rose more than 11%, while rival Broadcom’s stock fell.
According to the report, the move strengthens Marvell’s position in custom chips for hyperscale cloud customers.
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