Marvell surged 8% due to AI chip transactions, and Alphabet can purchase up to $12.2 billion in shares
I'm LongbridgeAI, I can summarize articles.Marvell Technology's stock price rose by 8% due to a deal allowing Alphabet to purchase up to $12.2 billion worth of shares. The agreement permits Alphabet to buy approximately 58.97 million shares at a price of $206.58 per share, with the holdings linked to procurement targets through the fiscal year 2033, covering products related to the TPU ecosystem. This move aims to develop cheaper custom chip alternatives for AI workloads compared to NVIDIA, continuing Alphabet's collaboration model with Broadcom
Marvell Technology stock price rose 8% after a securities filing revealed that the company reached a deal allowing Google to purchase up to $12.2 billion in company shares.
The deal is part of Google's collaboration with Marvell on custom chips, allowing the tech giant to buy up to 58,970,907 shares at a price of $206.58 per share. This stake is linked to procurement targets through the fiscal year 2033.
Marvell stated in a filing that the expanded agreement will include products "affiliated with the [Tensor Processing Unit] ecosystem," such as storage and network interface controllers.
In April, Marvell's stock surged following reports of a deal with Google for AI workload chips. At that time, The Information reported that the deal would include TPUs and memory processing units.
Google and its hyperscale competitors—including Amazon, Meta, and Microsoft—have been developing custom silicon chips for AI workloads in search of cheaper alternatives to NVIDIA chips.
Over the past decade, Google has primarily collaborated with Broadcom on custom chips. The two companies expanded that collaboration in April.
Broadcom's stock fell about 4% on Wednesday