AI infrastructure spending is moving into a new phase. The first wave centered on buying as many GPUs as possible. Now hyperscalers are designing custom chips, networking systems, and memory architectures to squeeze more performance from every dollar and watt. Alphabet (NASDAQ:GOOG<\/a>) is one of the companies pushing hardest in that direction. The company spent $80.6 billion on capital expenditures during the first six months of 2026, with servers, networking equipment, and data centers accounting for much of that investment. <\/p>\n That creates an enormous opportunity for Marvell Technology (NASDAQ:MRVL<\/a>). But its latest deal with Google comes with a twist: Marvell is offering Google a potential 7% stake in the company — but Google has to earn it. <\/p>\n Google Gets The Shares By Spending Money <\/p>\n On Aug. 18, Marvell issued Google a warrant for up to 58.97 million shares at an exercise price of $206.58 per share. If fully exercised, those shares would be worth about $12.2 billion and represent roughly 6.3% to 6.7% of Marvell, depending on the company’s eventual share count. Reuters reported that Google could become Marvell’s fifth-largest shareholder if the warrants fully vest. <\/p>\n Here’s the important part: Google doesn’t receive those shares upfront. Most of the warrant is tied to Google’s future purchases of Marvell’s custom silicon through fiscal 2033. The structure effectively makes the equity compensation contingent on Marvell generating revenue from the partnership. The shares vest in connection with qualifying revenue milestones, including $500 million increments of custom-product revenue. <\/p>\n Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks \u2014 and Google didn’t make the cut. Grab the names FREE today<\/a>. <\/p>\n In other words, Google gets more Marvell stock when Marvell gets more Google business. That’s a clever alignment of incentives. <\/p>\n 24\/7 Wall St. <\/p>\n No free lunch: Google’s $12 billion equity path requires billions in hardware purchases to unlock. \u00a9 24\/7 Wall St. <\/p>\n Story Continues <\/p>\n Marvell Is Expanding Beyond One AI Chip <\/p>\n The arrangement is also significant because it expands Marvell’s role in Google’s AI infrastructure. <\/p>\n The companies are working across AI inference chips, storage controllers, networking hardware, memory controllers, and near-memory compute. Those aren’t side projects. They address the bottlenecks emerging as AI models become larger and inference workloads grow. <\/p>\n Marvell has already been building toward this opportunity. Its Aug. 4 product announcement highlighted PCIe 6.0 storage controllers, CXL memory expansion and pooling, and optical technologies designed to improve AI inference efficiency. The company also said its existing NIC and CXL design wins provide a path to more than $2 billion of revenue by fiscal 2029. <\/p>\n That makes the Google agreement more than a flashy investment headline. It potentially locks Marvell deeper into one of the world’s largest AI infrastructure buildouts. <\/p>\n The Catch Is Actually The Opportunity <\/p>\n Granted, shareholders should recognize the dilution risk. If all 58.97 million warrants vest and Google exercises them, Marvell will have more shares outstanding. <\/p>\n But the company isn’t simply handing Google $12.2 billion worth of stock. Marvell is giving Google an incentive to buy its products for years. Alphabet, meanwhile, gets equity exposure to the supplier helping build its AI infrastructure. <\/p>\n In short, investors should focus less on the headline “7% stake” and more on what Marvell must accomplish to earn it. Google’s capital spending is already enormous, while Marvell’s custom-silicon business is expanding. <\/p>\n Key Takeaway <\/p>\n The warrant creates potential dilution, but it also acts like a revenue-linked customer incentive. For Marvell shareholders, that’s a trade worth watching: if Google earns nearly 7% of the company, Marvell will first have generated a large amount of business from one of the world’s most aggressive AI spenders. That makes the warrant less a giveaway than a bet on Google’s AI spending becoming Marvell revenue. <\/p>\n Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks \u2014 and Google didn’t make the cut. Grab the names FREE today<\/a>. <\/p>\n<\/a> metamorworks \/ Getty Images <\/p>\n