Marvell grants Google a $12.2 billion stock warrant tied to custom-silicon deal

Marvell Technology granted Google a warrant on Aug. 18 to buy up to 58,970,907 of its shares at $206.58 apiece, worth roughly $12.2 billion if fully exercised. The warrant is tied to a multiyear custom-silicon deal for Google’s tensor processing unit (TPU) ecosystem.

The equity sweetener sits on top of a commercial agreement signed July 29 covering chips that attach to Google’s TPUs: AI inference accelerators, storage and network interface controllers, memory interface controllers and near-memory compute. According to Marvell’s securities filing, about 1.36 million warrant shares vest quarterly over the first year, with the rest unlocking across 240 tranches, each tied to $500 million in custom-chip revenue, running through Marvell’s fiscal 2033.

The structure ties Google’s ownership directly to how much silicon it buys — an increasingly common way hyperscalers lock in chip suppliers. A fully vested stake would make Google one of Marvell’s five largest investors, and the deal could generate roughly $120 billion in revenue for Marvell through fiscal 2033 if performance targets are met.

Investors read it as a land grab in Google’s custom-chip supply chain. Marvell shares rose sharply, climbing by double digits intraday, while Broadcom, Google’s established custom-chip partner, fell as much as 5%; Alphabet stock was roughly flat.

The reaction may overstate the threat to Broadcom. William Kerwin, an analyst at Morningstar, called the agreement “a big win for Marvell” but said it reflects a growing pie at Google for new suppliers rather than a displacement of Broadcom.

The warrant is exercisable until Aug. 18, 2033, giving both sides a decade to see whether the revenue targets — and the ownership they unlock — actually materialize.