Marvell pops 6% on AI chip deal that lets Google buy up to $12.2 billion in shares

Marvell Technology shares rallied 6% on a deal that would allow Google to buy up to $12.2 billion in shares of the chipmaking company, according to a securities filing.

The deal, part of Google and Marvell’s partnership on custom chips, would allow the tech giant to purchase up to 58,970,907 shares at $206.58 apiece. The stake is tied to purchasing targets through the 2033 fiscal year.

Marvell said in a filing that the expanded agreement will include products that “attach to the [tensor processing unit] ecosystem,” such as artificial intelligence inference accelerators, and storage and network interface controllers.

In April, Marvell shares popped on a report of a chip deal with Google for artificial intelligence workloads. At the time, The Information reported that the deal would include a TPU and memory processing unit.

Google and its megacap competitors, including Amazon, Meta and Microsoft have been working on custom silicon chips for AI workloads in a bid to find cheaper…