Marvell issues Google $12.18 billion warrant for custom chips partnership
Business
Marvell Technology issued Google a warrant to buy a stake worth about $12.18 billion as part of a new partnership on custom chips.
Marvell will build AI accelerators, storage, and networking technology for Google, aiming to boost the search giant's AI power.
The news sent Marvell's stock up over 11%, while competitor Broadcom's shares dipped more than 3%.
Google seeks custom AI chips
With AI getting bigger, companies like Google want more specialized chips (think their own TPUs) instead of relying on NVIDIA's expensive graphics cards.
Google also has a long-term chip deal with Broadcom through 2031.
Moves like these show just how important custom hardware is becoming in the race to power next-generation AI tools.