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Marvell-Google custom silicon deal caps potential value at $120 billion
Marvell received warrants for up to 58.97 million shares, with tranches tied to $500 million blocks of custom-product revenue through fiscal 2033.
Marvell Technology and Alphabet’s Google have signed a custom-silicon agreement that tightens their relationship beyond a standard supplier contract, with deal value tied to Google’s TPU ecosystem. Marvell disclosed the arrangement on August 19, and the terms include warrants for up to 58.97 million Marvell shares, most of which vest across 240 tranches through fiscal 2033. The tranche structure is designed so that one tranche is earned for each $500 million of custom-product revenue, creating a ceiling of about $120 billion.
According to Yahoo Finance, the reporting frames a bull case around Google supporting another hyperscaler-scale custom-chip program while Marvell’s data-center business is already expanding. Marvell reported roughly $2.74 billion of quarterly revenue, and its data-center sales rose 46% year over year. Management also raised its fiscal 2027 and 2028 revenue outlooks to about $12 billion and $18 billion, respectively.
The same source highlights timing and expectations as the main counterpoints. Yahoo Finance notes that the larger Google contribution is not expected until fiscal 2029, while Marvell had nearly tripled in 2026 ahead of its latest earnings report.
For Google, the agreement provides another source of custom silicon spanning inference accelerators and related networking, storage, and memory-linked products, alongside potential equity upside from the warrants. However, the reporting says the purchases still need to translate into enough cloud, advertising, and AI revenue to justify the spending, and that $120 billion represents a ceiling tied largely to discretionary purchasing rather than a fixed commitment.