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Financial Times
Google strikes $12bn AI chip deal with Marvell
Google has entered into a major partnership with Marvell Technology, focused on the creation of custom AI chips, specifically tensor processing units (TPUs). The deal includes an option for Google to acquire up to $12.2 billion in Marvell shares, further cementing their collaboration. Marvell aims to design specialized hardware for Google, which is pivoting towards selling its AI chips to external customers for the first time. This partnership is expected to enhance Google's AI infrastructure significantly. As part of their collaboration, the two companies will work to develop various semiconductor products essential to the TPU ecosystem. The deal has already sparked investor interest, with Marvell's shares climbing following the announcement. This collaboration comes in a context where there are increasing demands for AI acceleration and specialized chip design to compete against established players like Nvidia. Google and Marvell's partnership marks a key development in the field, potentially reshaping the landscape of AI chip production and performance.
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Published 20 Aug 2026, 04:40 UTC2 min read
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Summary
TL;DR
- Google and Marvell to collaborate on custom AI chips
- Deal includes an option for Google to buy $12.2 billion in shares
- Marvell's shares increased 8% following the announcement
- Development of Tensor Processing Units (TPUs) as part of the partnership
- Google to sell TPUs to external customers for the first time
Interesting facts
- This partnership allows Google to enhance its AI infrastructure by utilizing specialized chips.
- Marvell has seen its stock price more than triple over the past year.
- The agreement includes performance-based vesting for Marvell shares, linking it to revenue from custom products.