Deal terms and equity structure
Marvell Technology disclosed on August 19, 2026, that it has issued Google a warrant to purchase up to 58,970,907 Marvell shares at an exercise price of $206.58 per share, an instrument Reuters calculates at roughly $12.18 billion if fully exercised. Only 1.36 million shares vest in equal quarterly installments during the first year, with the remainder divided into 240 tranches running from Marvell's third quarter of fiscal 2027 through fiscal 2033. Each tranche vests for every $500 million in eligible custom-products revenue generated through Google's business, a structure Morningstar analyst William Kerwin said suggests the agreement expands Google's overall custom silicon budget rather than displacing existing partners. According to Reuters, if Google fully exercises the warrant, the company would become Marvell's fifth-largest shareholder.
Scope of the custom silicon partnership
The expanded agreement covers products that "attach to the TPU ecosystem," including AI inference accelerators, storage controllers, network interface controllers, memory interface controllers and near-memory compute. RBC Capital Markets analyst Srini Pajjuri described the 8-K filing as the first official confirmation that Marvell is developing an AI accelerator for Google, validating prior informal references to a project called "Frozen v2." Pajjuri added that Marvell had previously been engaged on custom silicon with Amazon and Microsoft, and projected that Google will obtain roughly $80 billion to $90 billion worth of tensor processing units from Broadcom and MediaTek next year. Wells Fargo analyst Aaron Rakers called the expanded partnership a "notable incremental positive" for Marvell and reiterated an Outperform rating with a $240 price target. The disclosure follows Broadcom's April agreement to develop and supply future generations of custom AI chips and related components for Google's next-generation AI infrastructure through 2031.
Market reaction
Marvell shares jumped about 11% in premarket trading after the announcement, with intraday gains varying by outlet. CNBC reported the stock rallied nearly 10%, Investor's Business Daily recorded a 9.9% gain to $237.27, and International Business Times Australia recorded a 7.48% close at $232.15. The reports differ in the precise intraday move cited but agree on a sharp single-day advance. Broadcom, Google's long-standing custom silicon partner, fell more than 3% in premarket trading and about 5% on the day, according to separate outlets.
Other developments
Separately, Hindustan Times reported that Google's warrant terms mean most of the potential ownership is contingent on Google's future purchasing commitments to Marvell, rather than an immediate equity transfer. Invezz noted that the arrangement gives Google exposure to the chipmaker while linking the potential equity stake to the volume of business generated through the partnership, positioning Marvell as a deeper infrastructure partner supporting Google's TPU roadmap through fiscal 2033.
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