US semiconductor group Marvell has agreed to buy data centre component maker Lumentum in a $115bn all-stock deal, one of the largest of the year. The transaction creates a “leader in AI connectivity” as the industry races to handle surging demand for AI computing power. Matt Murphy, chief executive of Marvell, stated that AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, calling it a once-in-a-generation opportunity.
Marvell helps hyperscalers design specialised AI accelerator chips as an alternative to Nvidia. Lumentum manufactures optical technology used in data centres, including lasers. The deal comes as investors grow increasingly wary of whether record-breaking data centre investments will pay off.
Source: Financial Times Companies · Summarized by HeadlinesBriefing