Marvell signs custom AI chip deal with Google, gets up to $12.2B warrant
On August 19 Marvell signed a TPU-related custom chip deal with Google and issued a warrant for up to 58.97M shares at $206.58 strike.
On August 19, Marvell Technology filed an SEC disclosure announcing it had signed a series of agreements with Google to jointly develop custom AI chips covering TPU-ecosystem AI inference accelerators, storage controllers, network interface controllers, and memory interface controllers. Concurrently, Marvell issued Google a warrant to purchase up to 58.97 million Marvell shares at $206.58 per share, with a potential exercise value of $12.18 billion.
According to the filing, 1.361 million shares vest quarterly over the first year after signing. The remainder vests in 240 tranches from Q3 fiscal 2027 through fiscal 2033, with one tranche per $500 million of custom product revenue. Market reaction on August 19 was sharp: Marvell rose roughly 8% to 9.85%, while Broadcom, Google's longtime TPU partner, fell about 4.61%.
In broader equity-binding moves, AMD announced in February a performance-based warrant to Meta, allowing Meta to purchase up to 160 million AMD shares at $0.01 strike, about 10% of AMD. The Marvell-Google deal further deepens equity ties between North American AI chip and AI vendors. Marvell said the Google partnership could generate about $120 billion in revenue through fiscal 2033 if Google meets spending targets.