---
title: Marvell Gives Google Right to Buy $12.2B in Shares
description: Marvell granted Google warrants worth up to $12.2 billion in a new custom AI-chip deal, a challenge to Broadcom's position with the cloud giant.
date: 2026-08-19T00:00:00.000Z
category: big-tech
tags: google, ai-chips
---

Marvell Technology granted Google warrants to buy up to $12.2 billion of its stock as part of an
expanded custom AI-chip deal, according to a regulatory filing reported by
[Bloomberg](https://www.bloomberg.com/news/articles/2026-08-19/marvell-gives-google-right-to-buy-up-to-12-2-billion-in-shares)
on August 19. Marvell shares jumped nearly 8% on the news, while Broadcom, Google's longtime lead
custom-chip partner, fell more than 5%.

## The terms

The warrant gives Google the right to purchase up to 58.97 million Marvell shares at $206.58 each,
worth $12.18 billion if fully exercised, according to [Yahoo Finance's
reporting](https://finance.yahoo.com/technology/articles/marvell-grants-google-12-2-123812695.html)
on the filing. Exercising the full warrant would make Google Marvell's fifth-largest investor. The
deal could generate roughly $120 billion in revenue for Marvell through fiscal 2033, contingent on
Google hitting the purchase targets the warrant is tied to.

The agreement covers a broad range of technologies used alongside Google's TPUs, including
processors that run AI models, manage data storage, and move data across networks, not a single
chip line.

## How the market read it

Morningstar analyst William Kerwin called it "a big win for Marvell," but cautioned against reading
too much into Broadcom's stock drop. He described the deal as "a growing pie at Google for new
sources, rather than a competitive displacement of Broadcom."

## Why it matters

Structuring the deal as a stock warrant instead of a straight purchase order ties Google's upside
directly to how much silicon it actually buys from Marvell, which likely explains why investors
read this as a stronger signal of intent than a typical supply agreement would send. It's the kind
of commitment a company makes when it expects the relationship to compound over years, not a
one-off contract.

Whether this meaningfully dents Broadcom's position is less certain than the day's stock move
suggests. Kerwin's framing, that this expands Google's total chip spending rather than reallocating
an existing budget away from Broadcom, is the more measured read, and it lines up with how
aggressively every major cloud provider has been diversifying its silicon suppliers this year, from
[Nvidia's own shifting China supply chain](/ai-news/nvidia-h200-chips-resume-china-shipments/) to
[Google's own recent spending on AI training infrastructure](/big-tech/google-buys-spirit-airlines-data-ai-training/).

What to watch: how many warrant shares actually vest over the next year as an early signal of real
purchase volume, and whether Broadcom discloses any change in its own Google-related revenue
guidance in its next earnings report.

More [Big Tech & Industry Moves](/big-tech/) coverage, or everything tagged
[google](/tag/google/).