Marvell jumps as Google gains option to buy $12.2 billion stake
What's new: The share purchase right is tied to chip buying targets through fiscal 2033 as the partners widen their AI chip work.
Marvell Technology shares surged Wednesday after a securities filing showed Google can buy as much as $12.2 billion of the chipmaker's stock under an expanded custom-chip partnership. The agreement gives Google the right to purchase up to 58,970,907 shares at $206.58 each, with the stake linked to purchasing targets through fiscal 2033. Marvell said the broader arrangement will cover products connected to Google's tensor processing unit ecosystem, including AI inference accelerators and storage and network interface controllers. The deal deepens Google's push into custom silicon for AI workloads as large tech companies seek cheaper alternatives to Nvidia's chips. Broadcom, Google's longtime custom-chip partner, fell about 4%.