Marvell Grants Google a $12.2 Billion Stake Option in Custom AI Chip Deal

Marvell Technology announced on August 19, 2026 that it has granted Google the right to buy up to $12.2 billion in Marvell stock — nearly 59 million shares at $206.58 apiece — as part of a deepened partnership building custom chips for Google's AI infrastructure.

How the Stake Actually Vests

This isn't a lump-sum grant — nearly 1.4 million warrant shares vest in the deal's first year, with the rest arriving in tranches tied to every $500 million in chips Google actually buys from Marvell. To unlock the full $12.2 billion stake, Google would need to purchase roughly $120 billion worth of Marvell products through fiscal 2033 — a structure that ties Marvell's upside directly to sustained, multi-year purchasing, not a one-time announcement.

What's Covered, and Who It Displaces

• The deal spans a broad set of technologies used alongside Google's TPUs — processors that run AI models, chips that manage data storage, and components that move data across networks
• Marvell shares jumped nearly 8% on the news; Broadcom, which had been Google's primary custom-chip partner, fell more than 5% — the market reading this as a real, not marginal, shift in Google's supplier mix
• For any enterprise buyer tracking custom-silicon supply chains, a second credible TPU-adjacent supplier reduces single-vendor concentration risk in Google Cloud's own AI infrastructure stack