Marvell Grants Google $12.2 Billion Stock Warrant for Chips
Marvell Technology issued Google a warrant to buy up to $12.2 billion in Marvell shares as part of an expanded custom AI chip partnership, the company disclosed in a regulatory filing Wednesday.
- 58,970,907 shares are available at $206.58 apiece under the warrant.
- Nearly 1.4 million shares vest in equal quarterly installments in the first year.
- Remaining shares vest at one tranche per $500 million in joint-product revenue.
- Broadcom stock fell roughly 3-5% on the news; Marvell rose more than 6%.
Why it matters: The deal covers AI inference accelerators, storage controllers, network interface controllers, memory interface controllers, and near-memory computing — a broad slice of Google's chip stack.
- Google and rivals Amazon, Meta, and Microsoft are developing custom silicon to reduce dependence on Nvidia's higher-cost processors.
- Broadcom had been Google's primary custom chip partner for roughly a decade and signed its own expanded AI chip deal with Google in April.
How 6 sources split on this story
Where they split: Center outlets treat the warrant as a straightforward investment mechanism tied to chip revenue; ZeroHedge frames the structure as a circular financing arrangement that raises questions about its underlying value.
Center coverage, 5 sources: The center frames this as a significant strategic partnership that advances Google's AI chip ambitions and validates Marvell as a major player in custom silicon.
CNBC9hMarvell pops 6% on AI chip deal that lets Google buy up to $12.2 billion in sharesCNCTV News11hMarvell gives Google option to buy US$12.2 billion stake in custom chip deal
Reuters10hMarvell dá ao Google opção de adquirir participação de US$12,2 bi em acordo de chips
Bloomberg12hMarvell Gives Google Right to Buy Up to $12.2 Billion in Shares
MarketWatch11hMarvell’s stock surges on news of Google chip deal — and Broadcom’s fallsRight coverage, 1 sources: The right frames the deal skeptically, describing it as a 'chips-for-warrants' arrangement that resembles circular financing rather than a straightforward commercial contract.
What’s next: Warrant vesting runs from Marvell's fiscal Q3 2027 through fiscal 2033.
- How Broadcom's Google business is affected will become clearer in coming earnings disclosures.
- How much of Google's custom chip spending will shift from Broadcom to Marvell is not yet established.
- Whether Google will exercise the full warrant depends on whether joint-product revenue hits the required thresholds.
- What the deal means for Nvidia's share of Google's AI infrastructure spending remains unclear.