Google has struck a deal with Silicon Valley semiconductor group Marvell to develop custom AI chips, including an option to buy up to $12.2bn in Marvell shares. Marvell issued a warrant allowing Google to purchase up to 58.9m shares at $206.58 each, according to a regulatory filing. Marvell’s shares rose 8 per cent on the news.

Marvell helps hyperscalers such as Amazon design their own specialised AI accelerator chips, providing an alternative to Nvidia’s general‑purpose GPUs. Broadcom, Google’s main TPU supplier, saw its stock fall 5 per cent. The expanded partnership comes as Google begins selling its tensor processing units (TPUs) to external customers and has built a financing operation to supply over $150bn of AI chips to Anthropic.

Under the agreement Marvell will develop custom semiconductor products for the TPU ecosystem, including AI inference accelerators, storage controllers, network interface controllers, memory interface controllers, and near‑memory compute. The first 1.3 million shares vest quarterly in year one; the remainder vest based on $500 million revenue milestones from the joint products through 2033. Nvidia also invested $2 billion in Marvell and will collaborate on silicon photonics, a technology Marvell bolstered by acquiring Celestial AI for use in Google’s Gemini, Anthropic’s Claude Code and OpenAI’s ChatGPT.