Marvell Grants Google Warrant for 58.97 Million Shares Tied to Custom Chip Revenue

Marvell Technology has issued a warrant to Google allowing the tech giant to purchase 58.97 million shares of its stock at a price of $206.58 per share. This agreement is contingent upon Google generating revenue from Marvell's custom silicon, meaning the more Google utilizes these chips, the more shares it can acquire at the predetermined price.

This arrangement follows a similar deal Marvell made with Amazon Web Services in December 2024, where AWS was granted a warrant for 4.18 million shares at an exercise price of $87.7706. The current agreement with Google significantly surpasses the AWS deal in both share count and exercise price, highlighting Marvell's strategy to secure partnerships with major cloud service providers through equity incentives.

The announcement of this warrant coincides with reports of Google engaging in discussions with Marvell to co-develop new AI chips, including a memory processing unit and a specialized Tensor Processing Unit for inference tasks. Following the news, Marvell's stock experienced a 6% increase, while shares of Broadcom fell.

Marvell's partnerships with Google and AWS position it as a key player in the custom silicon market, as it also supplies custom ASICs to Microsoft. The success of these partnerships could enhance the value of the warrant for Google, allowing it to purchase shares at a fixed price regardless of market fluctuations. Investors are advised to monitor Marvell's regulatory filings for further details on the vesting schedule and performance milestones associated with this agreement.

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Source: KLEA News