Marvell issued Google a warrant for up to 58.97 million shares, contingent on $12.2 billion in custom chip purchases through 2033.
Marvell Technology (MRVL) expanded its custom chip agreement with Google, issuing a warrant for up to 58.97 million shares at $206.58 each. The full $12.2 billion position is tied to Google’s chip purchases, with shares unlocking in increments of $500 million in revenue from fiscal 2027 to 2033.
The deal deepens Marvell’s ties with hyperscale customers, including Google, Microsoft, and Amazon. Only 1.4 million shares become available in the first year, with the remainder contingent on Google’s spending. The structure aims to align Google’s long-term chip orders with equity incentives.
Marvell’s stock rose following the announcement, reflecting investor optimism about the revenue potential. The agreement underscores the growing demand for custom AI semiconductors among cloud providers.