Marvell has granted Google a warrant to buy up to $12.2 billion of MRVL shares, nearly 59 million at $206.58 each, tied to Google's custom AI chip purchases, and the stock jumped roughly 8 to 10 percent on the news.
Read the full story: Google Can Buy $12.2B of Marvell Stock in New Chip Deal →
Transcript
Marvell just handed Google the right to buy up to 12.2 billion dollars of its stock, and Google didn't pay a cent up front. It's a warrant: almost 59 million shares at a fixed price of 206 dollars 58 cents each. But it only vests in pieces, and each piece unlocks when Google spends another 500 million dollars buying chips from Marvell. That's the real story. Google isn't just ordering silicon for its TPU clusters, it's giving Marvell a financial incentive to actually deliver on that supply, because the stock only becomes real if the orders happen. Analysts think this could be worth 120 billion dollars in revenue for Marvell through 2033. Marvell's stock jumped nearly 10 percent on the news. And for Nvidia, this is one more hyperscaler quietly building its own chip supply chain outside Nvidia's GPUs. The number to actually watch isn't 12.2 billion. It's 500 million, the size of each tranche that has to happen for any of this to vest.