Marvell

Semiconductors · AI Chips · Cloud Computing

Partnership

Marvell ties Google's $120B chip spend to a $12B stock warrant

The arrangement puts zero cash down for the buyer, letting equity vest only as orders actually convert into shipped silicon.

• Marvell disclosed that Google holds a warrant for 58.97 million Marvell shares at a $206.58 strike price, worth about $12.2 billion, tied to its expanded custom-chip agreement.
• Marvell doesn't build Google's core TPU compute die (Broadcom and MediaTek do); it supplies the networking, memory and storage chips that attach to it.
• The warrant vests in 240 tranches of $500 million each in custom-product revenue through fiscal 2033, implying up to $120 billion in cumulative sales; the filing calls the underlying purchases discretionary.
• At its October 6 investor day, Marvell raised its fiscal 2031 revenue target to $70-90 billion from an $8.2 billion fiscal 2026 base, and shares, already up 238% in 2026, closed 5.8% higher at $287.01.
• Broadcom, whose own custom-silicon relationship with Google this deal is widely read as challenging, fell about 5% on the news while Marvell jumped as much as 14% before closing up roughly 8%.
• It's the second major AI warrant-for-supply deal in a year, after AMD granted OpenAI a warrant for up to 160 million shares tied to six gigawatts of GPU deployment in October 2025.
• Structuring supply deals as performance-vesting equity rather than cash purchase orders lets buyers lock in capacity with no upfront cost while aligning suppliers' stock upside with actual shipments, a pattern now spreading across AI hardware deals.