Marvell gave Google a warrant on 19 August to buy up to 58.97 million of its shares at $206.58 each, worth $12.2 billion if Google exercises the option in full. The stake would make Google roughly the fifth largest holder of Marvell stock, and the companies say the arrangement could bring Marvell close to $120 billion in revenue through fiscal 2033.
The warrant does not vest for free. Google earns roughly 240,000 shares for every $500 million of qualifying chip purchases, tying the eventual size of the stake directly to how much custom silicon Google actually buys rather than to a fixed schedule. The arrangement covers the processors, storage controllers and networking silicon that support Google’s TPUs, the range of parts Marvell already supplies for hyperscale AI infrastructure.
The market read it as a vote of confidence in Marvell’s position inside Google’s supply chain, and its shares jumped nearly 8% on the news. Broadcom, which supplies comparable custom silicon of its own, fell more than 5% the same day, which is the clearest sign of how directly investors think this reallocates a fixed pool of custom chip business between the two suppliers.
The number being reported, $12.2 billion, is the maximum outcome, not a payment. It only pays out if Google sustains a run rate of chip purchases from Marvell that neither company has disclosed, over a stretch that runs to 2033. A warrant tied to future demand is also a wager that the demand keeps arriving, and TPU procurement forecasts that far out are not something either company has put a number on yet.
