Marvell shares jump on Google AI chip deal worth up to $12.2 billion in equity

Deal structure and stock movement

Marvell Technology shares rallied roughly 9.8–10% after the chipmaker disclosed in a securities filing that it has signed a contract to design artificial intelligence chips for Google and issued a warrant allowing Google to acquire about 58,970,907 shares of common stock at $206.58 apiece, a stake valued at up to $12.2 billion. Marvell's stock closed at $237 on August 19, 2026, the day of the filing. An initial $960 million tranche of shares is set to vest over the next year, with the remaining roughly $11.4 billion vesting in 240 tranches through fiscal 2033.

Scope of the custom silicon work

According to Marvell's filing, the partnership will cover custom chips that "attach to the TPU ecosystem," with priorities including custom inference chips, custom network interface controllers, storage controllers, memory interface controllers, and custom near-memory computing devices. Marvell said one focus will be inference-optimized silicon, a category that includes Google's TPU 8i, an inference chip introduced in April that stores large language model KV caches on-chip and includes a module optimized for chain-of-thought reasoning workloads. The filing also pointed to development tied to Google's Jupiter data center networking fabric.

Competitive context and Broadcom reaction

Google has historically developed its TPU line largely with Broadcom, and in April Broadcom announced an expanded agreement to supply Google with AI accelerators and related components through 2031. Broadcom shares fell about 5% on August 19 following Marvell's disclosure, reflecting investor concern about how the new arrangement could affect Broadcom's existing role. The Marvell warrant is tied to purchasing targets through fiscal 2033, aligning the new arrangement with the longer Broadcom horizon reported earlier in the year.

What remains uncertain

The filing does not specify which Marvell-designed chips will reach production first or how the work will be divided with Broadcom across Google's existing and forthcoming TPU generations. It is also unclear whether the inference-focused work points specifically to next iterations of the TPU 8i or to a separate product line, and Marvell did not detail timelines or volumes. The vesting schedule tied to purchasing milestones through fiscal 2033 leaves the ultimate size of Google's stake contingent on those targets.