Google Wins Right to Buy $12.2B Marvell Stake in Chip Deal

Marvell Technology has given Google a warrant to buy up to $12.2 billion worth of its stock, a compensation structure tied to an expanded custom-chip partnership between the two companies, according to a filing with the U.S. Securities and Exchange Commission.

What the filing discloses

Marvell and Google signed a commercial agreement on July 29, 2026 covering Marvell’s development of custom silicon for Google’s TPU ecosystem — including AI inference accelerators, storage controllers, network interface controllers, memory interface controllers and near-memory compute products, the kind of chips explained in our TPU explainer. On August 18, Marvell issued the warrant for 58,970,907 shares at an exercise price of $206.58 apiece.

Most of the shares are tied directly to sales. A small tranche of 1.36 million shares vests on a quarterly schedule over the agreement’s first year, but the remaining 57.6 million shares unlock in 240 equal installments — one for every $500 million in “custom products” revenue Marvell books from Google through early 2033. Full vesting would require Google to purchase roughly $120 billion worth of Marvell-made chips over that period.

Market reaction

Marvell shares jumped roughly 10% on the news, while shares of Broadcom — long Google’s lead partner in co-designing TPUs — fell more than 5%. Investors read the deal as Google diversifying its custom-silicon supply chain beyond a single vendor, a shift that could reshape competition among chipmakers racing to serve hyperscalers’ AI infrastructure needs.

Why it matters

The warrant-for-commitment structure echoes other 2026 chip pacts, including Samsung and Broadcom’s own $200 billion AI chip agreement, where suppliers trade discounted or performance-linked equity for guaranteed purchase volume. It underscores how central custom silicon has become to Google’s AI buildout as it scales infrastructure to compete with Nvidia-based systems used by rivals such as OpenAI.

Neither company has issued a separate public statement beyond the SEC disclosure, which does not detail pricing for the underlying chip contracts.