Marvell Technology (MRVL) surged more than 12% in premarket trading on Wednesday after the company announced an expanded partnership with Google to develop custom AI chips.
Marvell Technology, Inc., MRVL
The deal was formalized on July 29, with the warrant issued on August 18. Google received the right to purchase up to 58.97 million Marvell shares at $206.58 per share.
If Google exercises the full warrant, the stake would be worth roughly $12.2 billion. That would make Alphabet the fifth-largest investor in Marvell, according to LSEG data.
The partnership is not a straightforward purchase. Most of the warrant shares only vest if Google hits agreed spending targets with Marvell through fiscal 2033.
Specifically, one tranche of shares vests for every $500 million in custom products revenue Google generates with Marvell. That ties the size of Google’s potential stake directly to how much it buys.
Around 1.36 million warrant shares vest in equal quarterly installments during the first year of the agreement. The rest follow the revenue-linked schedule.
The expanded partnership spans a wide range of chips designed to work within Google’s TPU ecosystem. That includes AI inference accelerators, storage controllers, network interface controllers, memory interface controllers, and near-memory compute.
Google’s tensor processing units are central to much of its AI infrastructure. Demand for custom chips like TPUs has grown as companies look for alternatives to Nvidia’s GPUs, particularly for AI inference workloads.
The deal makes Marvell a meaningful player in that ecosystem alongside an existing agreement Google holds with Broadcom.
Broadcom (AVGO) dropped more than 3% in premarket trading following the announcement. Broadcom has a long-term deal with Google to develop and supply custom AI chips through 2031.
The Marvell deal does not replace Broadcom’s agreement, but it signals Google is expanding its supplier base for custom silicon.
Google’s own stock was little changed in premarket trading after the news broke.
The announcement comes as Big Tech companies have ramped up AI spending. Earlier this year, major tech firms signaled combined AI infrastructure spending exceeding $700 billion for 2026, up from around $400 billion in 2025.
Marvell now finds itself competing more directly with Broadcom for a share of that spending. The warrant structure means the more Google buys from Marvell, the bigger Google’s ownership stake becomes.
The partnership was disclosed in an SEC filing on August 19, 2026.
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