Marvell Technology has granted Google a warrant to buy up to $12.2 billion of its shares, vesting in tranches as Google purchases custom chips tied to Google's TPU ecosystem, including AI inference accelerators and networking/storage controllers. The purchasing targets run through Marvell's 2033 fiscal year and could bring Marvell about $120 billion in sales, potentially making Google its fifth-largest investor. Marvell shares jumped as much as 14 percent while Broadcom, the incumbent custom-chip supplier for Google, fell about 5 percent. Analysts framed the deal as adding a second major supplier alongside Broadcom rather than displacing it. The arrangement fits a broader pattern of 'circular' AI deals tying chipmaker sales to customer stock, echoing recent Nvidia-OpenAI and AMD-OpenAI arrangements that have raised bubble concerns among investors.
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What Marvell is buildingHow the market reactedThe circular-deal questionGoogle’s playbookQuestions this post answers
What is the Marvell-Google stock warrant deal announced in August 2026?
Marvell gave Google the right to buy up to 58,970,907 shares at $206.58 each, worth about $12.2 billion, in exchange for Google buying Marvell's custom chips. The warrant vests in tranches tied to purchases, with roughly 1.4 million shares vesting in the first year and additional tranches unlocked for every $500 million in chip orders, running through Marvell's 2033 fiscal year. Follow how AI chip supply deals reshape vendor relationships with daily.dev.
What kind of chips is Marvell supplying to Google under the new deal?
Marvell is supplying products that attach to Google's tensor processing unit ecosystem rather than the TPUs themselves, including AI inference accelerators and controllers handling storage and networking between chips. This expands on an earlier April 2026 report that the companies were discussing a TPU and memory-processing unit collaboration. daily.dev helps engineers track which vendors power major cloud AI infrastructure.
Is the Marvell-Google deal replacing Google's partnership with Broadcom?
No, analysts characterize it as adding a second major chip supplier rather than displacing Broadcom, which Google has relied on for custom chips for most of the past decade and expanded ties with in April 2026. Morningstar analyst William Kerwin called it 'a growing pie at Google for new sources, rather than a competitive displacement of Broadcom.' daily.dev keeps engineers current on shifts in the AI hardware supplier landscape.