Google and Marvell Reach Custom AI Chip Collaboration Agreement, with Investment Reaching $12.18 Billion

Odaily News Google has signed a custom AI chip development and supply agreement with semiconductor design company Marvell, which has also granted Google warrants to acquire approximately 59 million shares of its common stock. If Google exercises all rights, the total investment would reach $12.18 billion.

Google will receive warrants in stages based on its procurement volume from Marvell, with the majority of rights gradually granted for every $500 million worth of products purchased. If Google meets all procurement conditions, Marvell could generate cumulative revenue of up to $120 billion.

Marvell will supply Google with custom chips including AI inference accelerators, storage and network interfaces, memory interface controllers, and near-memory computing solutions. Google previously collaborated primarily with Broadcom on TPU and AI infrastructure chip development, with both parties having signed a joint development agreement extending through 2031. This new collaboration does not replace Broadcom. (ZDNet)