Google secures $12.2 billion warrant in Marvell AI chip deal
Marvell grants Google the right to buy up to 58.97 million shares as part of a custom-chip partnership. Marvell stock jumped double digits.
Illustration · AI-generated (AI IN LIFE)
At a glance
- Warrant: up to 58.97 million Marvell shares, total value around $12.2 billion
- Tied to purchasing targets through fiscal 2033 (SEC filing)
- Scope: AI inference accelerators, storage, networking, memory controllers
- Market reaction: Marvell +10–11%, Broadcom −3%
- Context: Broadcom-Google agreement through 2031 signed in April 2026
What was agreed? Chip designer Marvell Technology has granted Google a warrant as part of an expanded custom AI chip partnership: an option on up to 58.97 million Marvell shares worth around 12.2 billion US dollars in total. According to SEC filings, exercise is tied to purchasing targets running through fiscal year 2033.
What does the deal cover technically? According to Bloomberg, Marvell will develop AI inference accelerators, storage and networking technology, memory interface controllers and near-memory computing components for Google — exactly the building blocks hyperscalers use to reduce their dependence on Nvidia's pricey GPUs.
How did markets react? Marvell shares rose more than 11 percent in premarket trading on 19 August 2026 and closed up around 10 percent according to CNBC; rival Broadcom fell over 3 percent. Morningstar celebrated the contract as Marvell "landing the white whale" — the long-awaited anchor customer.
Why now? Google is ramping up spending on its own Tensor Processing Units (TPUs) and spreading production across several partners: Broadcom signed a long-term agreement with Google through 2031 as recently as April 2026. Equity options as a deal component are familiar from similar arrangements, such as OpenAI and AMD.
What does it mean for the market? Custom silicon is becoming a strategic weapon in the AI race: hyperscalers that control their own chips cut cost per token and secure capacity. For European companies this points to falling inference prices in the medium term — and an even stronger concentration of value creation among a few US giants.
FAQ
What exactly did Google agree with Marvell?
An expanded custom-chip partnership plus a warrant: Google may buy up to 58.97 million Marvell shares worth about $12.2 billion, tied to purchasing targets through 2033.
Why is Marvell giving Google a stock option?
The option rewards guaranteed chip purchases: the more Google buys, the more shares it can acquire — a model that locks in large customers long term.
What does the deal mean for Nvidia?
It strengthens the custom-silicon trend: hyperscalers like Google reduce dependence on Nvidia GPUs with their own chips, raising price pressure in the inference market.
