Marvell gives Google option to buy $12.2 billion stake in custom chip deal

Alphabet’s Google is deepening its custom AI chip strategy by giving Marvell a warrant that could be worth about $12.18 billion, tying the chipmaker more closely to Google’s TPU and next-generation AI infrastructure plans. The deal highlights continued strong demand for specialized AI accelerators as companies look for alternatives to Nvidia’s graphics processors. Marvell shares jumped more than 11% in premarket trading on the news, while rival Broadcom fell over 3% after being identified as another major supplier in Google’s custom chip ecosystem. The development signals intensifying competition among semiconductor suppliers for large-scale AI hardware contracts and may reinforce investor focus on custom silicon as a major growth area in AI spending.