Marvell Technology issued Google a warrant to purchase up to $12.2 billion in shares, expanding the chipmaker's AI partnership with the search giant. The warrant, issued on August 18, covers 58.97 million shares at $206.58 per share, according to an SEC filing.
The partnership spans AI inference accelerators, storage controllers, network and memory interface controllers, and near-memory compute for Google's custom TPU ecosystem. The warrant grant is structured to deepen Marvell's role as Google's supplier for chips critical to training and running large language models at scale.
Marvell manufactures infrastructure semiconductors for data centers and networking. The company's storage and memory interface products sit in the path of data flow for AI workloads, where Google has invested billions in custom silicon to reduce reliance on traditional semiconductor vendors. The warrant is exercisable and represents a significant equity stake if Google chooses to deploy it.
The move follows other semiconductor vendors tying themselves to major cloud platforms through purchasing commitments. Nvidia has secured multi-year purchasing commitments from hyperscalers, while Intel has signed similar framework agreements with cloud providers to lock in demand for next-generation chips.
Marvell closed at $206.58 on August 18, the strike price for the warrant. At that price, the $12.2 billion commitment would represent roughly 27 percent of Marvell's market capitalization at the time, giving Google significant influence over the chipmaker's capital allocation if the warrant is exercised in full.
Google and Marvell have collaborated on infrastructure chips since at least 2023. The explicit warrant grant ties both parties to sustained demand for custom silicon as AI workloads scale. The product areas covered in the partnership include components beyond processors.
Semiconductor vendors face pressure from hyperscalers to develop purpose-built solutions rather than selling off-the-shelf products. If Google exercises the warrant fully, Marvell would face equity dilution of roughly 7.3 percent based on the 58.97 million shares covered. The warrant ensures Google locks in a supplier relationship without taking on balance-sheet risk if demand falls.
