US chip company Marvell Technology has granted Google the right to buy up to $12.2bn worth of its shares as part of an expanded agreement covering custom semiconductor products, according to a US Securities and Exchange Commission (SEC) filing.
Under the warrant, the Alphabet subsidiary can purchase up to 58.97 million Marvell shares at $206.58 each.
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The rights are tied to Google’s purchases of custom chips from Marvell, with vesting structured in tranches linked to spending.
A total of 1.36 million shares vest in equal quarterly instalments during the first year following the agreement.
The remaining shares vest in 240 equal tranches, each triggered by $500m in Custom Products revenue, running from Marvell’s third fiscal quarter of 2027 through the end of its 2033 fiscal year.
The commercial agreement, entered into on 29 July, covers a range of custom silicon linked to Google’s tensor processing units (TPUs). It includes AI inference accelerators, storage controllers, network interface controllers, memory interface controllers and near-memory compute.
The warrant itself was issued on 18 August 2026 and is exercisable until 18 August 2033.
TPUs have gained attention as companies look for alternatives to Nvidia’s graphics processors, particularly for running trained AI models, Reuters reported.
The deal follows changes within Google’s AI division that shifted responsibilities towards executives with closer ties to Google Cloud, a move analysts say has placed more focus on custom chips and AI infrastructure within that business, the news agency wrote.
The arrangement would also make Google one of Marvell’s largest shareholders.
The warrant shares are not transferable, other than to controlled affiliates, without Marvell’s consent, and are subject to standard trading restrictions and lock-up terms.
Earlier this year, Marvell agreed to acquire XConn Technologies in a transaction valued at approximately $540m, consisting of around 60% cash and 40% stock.
The deal is intended to expand Marvell’s portfolio of PCIe and CXL switching products, with XConn’s technology and engineering team expected to contribute to the company’s data centre connectivity strategy, particularly in the area of AI infrastructure.
