Marvell Technology Inc. (MRVL) surged more than 12% in premarket trading on Wednesday, and later held gains of about 7%, after disclosing an expanded custom AI chip partnership with Google. The agreement was formalized on July 29, with the warrant issued on August 18 and disclosed in an SEC filing on August 19, 2026.
Google received a warrant to purchase up to 58.97 million Marvell shares at $206.58 per share. If fully exercised, the warrant would be worth roughly $12.2 billion and represent about 7% of Marvell's outstanding shares. Based on LSEG data, that would make Alphabet the fifth-largest investor in Marvell.
The structure ties most of the potential equity to actual purchasing volume. Only 1.36 million warrant shares vest in equal quarterly installments during the first year. The remaining shares are split into 240 equal tranches running from Marvell's third quarter of fiscal 2027 through fiscal 2033, with one tranche vesting for every $500 million in eligible custom-products revenue generated through Google's business.
The work covers AI inference accelerators, storage controllers, network interface controllers, memory interface controllers and near-memory compute products designed for Google's TPU ecosystem. Google's tensor processing units are central to its AI infrastructure, and demand for custom silicon has grown as companies seek alternatives to Nvidia's GPUs, especially for inference workloads.
The announcement pressured Broadcom shares, which fell more than 3% premarket and were down more than 5% in regular trading. Broadcom already holds more than 70% of the custom AI chip market and has a long-term agreement with Google through 2031. The Marvell deal does not replace that relationship, but it shows Google is diversifying its custom silicon suppliers.
The partnership comes as Big Tech companies have raised AI infrastructure spending expectations to more than $700 billion in 2026, up from about $400 billion in 2025.
