{"id":145717,"date":"2026-08-20T04:29:29","date_gmt":"2026-08-20T04:29:29","guid":{"rendered":"https:\/\/www.europesays.com\/ai\/145717\/"},"modified":"2026-08-20T04:29:29","modified_gmt":"2026-08-20T04:29:29","slug":"marvell-gives-google-option-to-buy-12-2-billion-stake-in-custom-ai-chip-deal","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ai\/145717\/","title":{"rendered":"Marvell gives Google option to buy $12.2 billion stake in custom AI chip deal"},"content":{"rendered":"\n

By Anhata Rooprai <\/p>\n

Aug 19 (Reuters) – Marvell Technology will help develop Google’s in-demand custom chips and has offered the search giant the right to buy a potential $12.2 \u200cbillion stake, the latest deal in which Big Tech is investing in the suppliers \u200cpowering its AI build-out. <\/p>\n

Shares of the chipmaker jumped nearly 8% as the deal marked a major vote of confidence \u200bfrom a top cloud-computing provider and could bring roughly $120 billion in revenue through fiscal 2033, if Google hits the targets its stake option depends on. <\/p>\n

Larger rival Broadcom, which had been Google’s main custom chip partner so far, fell more than 5%, while shares in Google-parent Alphabet were little \u200cchanged. <\/p>\n

Demand for in-house chips such \u2060as Google’s tensor processing units (TPUs) has surged as companies seek cheaper alternatives to Nvidia’s pricey graphics processors and technologies better suited for inference, the \u2060process of running trained AI<\/a> models. <\/p>\n

A recent overhaul of Google’s AI division that shifted power toward executives with closer ties to Google Cloud has also put the spotlight on the custom chips and \u200bAI infrastructure, \u200bwhich analysts say are increasingly central to powering \u200bthat business. <\/p>\n

Still, Wednesday’s deal could add \u200cto growing concerns around the increasingly intertwined relationships in the AI industry, days after Nvidia<\/a> agreed to provide a backstop of up to $105 billion for a data-center project OpenAI is leasing in Ohio. <\/p>\n

In October, AMD struck a similar deal, agreeing to supply OpenAI with AI chips worth tens of billions of dollars in annual revenue while giving the ChatGPT maker the option \u200cto buy a stake of up to roughly 10% \u200bin the chipmaker. <\/p>\n

The Marvell-Google deal covers a broad range \u200bof technologies used with TPUs, including processors \u200bthat run AI models, manage data storage and move information across networks. <\/p>\n

It \u200cgives Google a warrant to buy up \u200bto 58.97 million Marvell \u200bshares at $206.58 apiece. That is worth $12.18 billion if fully exercised and will make Google the fifth-largest investor of Marvell. <\/p>\n

“This is a big win for Marvell,” said Morningstar analyst \u200bWilliam Kerwin, but added that \u200che saw “this news as a growing pie at Google for new sources, rather \u200bthan a competitive displacement of Broadcom.” <\/p>\n

(Reporting by Anhata Rooprai in Bengaluru, additional reporting \u200bby Harshita Mary Varghese; Editing by Shilpi Majumdar) <\/p>\n","protected":false},"excerpt":{"rendered":"By Anhata Rooprai Aug 19 (Reuters) – Marvell Technology will help develop Google’s in-demand custom chips and has…\n","protected":false},"author":2,"featured_media":145718,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[24,9376,132,1429,2194,586],"class_list":["post-145717","post","type-post","status-publish","format-standard","has-post-thumbnail","category-google","tag-ai","tag-custom-chips","tag-google","tag-google-ai","tag-google-cloud","tag-marvell-technology"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/145717","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=145717"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/145717\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/145718"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=145717"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=145717"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=145717"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}