August 20, 2026 / SemiMedia / — Marvell Technology has expanded its custom AI chip partnership with Google and issued the company a warrant linked primarily to future purchases of Marvell products.

The companies entered into the commercial agreement on July 29, according to a Marvell regulatory filing. The partnership covers custom silicon programs connected to Google’s TPU ecosystem, including AI inference accelerators, storage controllers, network interface controllers, memory interface controllers and near-memory computing products.

Marvell issued the warrant on August 18, allowing Google to purchase up to 58,970,907 Marvell common shares at an exercise price of $206.58 per share. Exercising the warrant in full would require approximately $12.18 billion. The warrant remains exercisable until August 18, 2033, subject to its vesting conditions.

Of the total, 1,360,867 shares will vest in equal quarterly installments during the first year of the agreement. The remaining shares are tied to purchases made by Google and its affiliates.

From Marvell’s fiscal third quarter of 2027 through the end of fiscal 2033, the performance-based portion will vest in 240 equal tranches. One tranche will vest for every $500 million in revenue generated from qualifying custom product purchases.

Full vesting of the performance-based portion would therefore require approximately $120 billion in cumulative qualifying revenue from Google. The figure represents the maximum revenue threshold built into the warrant structure rather than committed or guaranteed sales.

If all warrant shares vest and are exercised, Google could hold approximately 7% of Marvell and become its fifth-largest shareholder.

The scope of the agreement gives Marvell a role across processing, storage, memory and networking technologies surrounding Google’s AI infrastructure. Broadcom has been Google’s primary custom chip partner, and the addition of Marvell indicates that Google is broadening its supplier base as demand for TPU capacity expands.

Marvell shares rose nearly 8% following the disclosure, while Broadcom fell more than 5%, according to Reuters. The agreement is viewed as an expansion of Google’s custom silicon supply chain rather than confirmation that an existing supplier will be displaced.

Large cloud providers are increasing the use of chips designed for specific AI workloads as they expand inference capacity and seek alternatives to general-purpose GPUs. The Marvell agreement links most of Google’s potential equity position directly to custom chip purchases over the coming years.