Marvell gives Google option to buy US$12.2 billion stake in custom AI chip deal

Marvell Technology will help develop Google’s in-demand custom chips and has offered the search giant the right to buy a potential US$12.2 billion stake, the latest deal in which Big Tech is investing in the suppliers powering its AI build-out.

Google and its competitors have been pursuing custom chips to improve efficiency and reduce reliance on Nvidia.

Google will also get the option to purchase about $12 billion worth of Marvell’s stock.

Marvell gives Google option to buy $12.2 billion stake in custom AI chip deal  Reuters

The warrant gives Google the option to buy up to 58.97 million Marvell shares, tied largely to purchasing targets through fiscal 2033

Aug 19 : Marvell Technology said on Wednesday it has issued Alphabet's Google a warrant to buy a stake worth about $12.18 billion as part of a deal to help develop custom chips for the search giant.Shares of the custom chipmaker jumped more than 11 per cent in premarket trading, while larger rival Broadcom was down ove