Silicon Valley semiconductor manufacturer Marvell has signed a deal to develop custom chips for Google and given it the option to buy shares worth up to $12.2 billion, the latest major partnership between tech firms and chip manufacturers.
On Wednesday, Marvell said in a regulatory filing that the two companies would work together to develop semiconductors to connect to Google’s tensor processing unit (TPU) ecosystem, including AI inference accelerators, storage controllers, network interface controllers, memory interface controllers, and near-memory computing products.
As part of what it described as an expanded partnership, Marvell has given Google the option to buy up to 58.9 million of its shares at $206.58 each. If fully exercised, this would be worth a total of $12.18 billion.
Marvell designs custom silicon for AI hyperscalers including Amazon, an increasingly attractive proposition as tech giants seek to reduce their dependence on Nvidia’s GPUs for AI inference provision.
Marvell’s shares climbed over eight per cent on Wednesday following the announcement, and further gains this week mean the company is up over 13 per cent from last week at time of publication. This continues a rapid growth trend that has seen its value increase 180 per cent since the start of the year and over 250 per cent from August 2025.
Shares in Broadcom, Google’s current main TPU supplier, fell five per cent, and continued losses mean it is now down over 11 per cent from last Friday.
The news comes as Google begins to sell its TPUs to other AI companies. The Financial Times reported earlier in the month that the search giant is set to supply over $150 billion of AI chips to Anthropic using a “mammoth financing operation”.
