The chip manufacturer Marvell has granted Google a warrant for up to 58.97 million of its own shares – with a maximum value of around 12.2 billion dollars. The option, issued on August 18, 2026, is tied to an agreement for custom AI chips for Google’s TPU ecosystem. If fully exercised, it would make Google the fifth-largest Marvell shareholder.
Warrant ties vesting to Google’s chip orders
Marvell submitted the details to the US Securities and Exchange Commission (SEC): The warrant allows Google to purchase up to 58,970,907 Marvell shares at a price of 206.58 dollars per share, valid until August 18, 2033. Only a small portion, 1,360,867 shares, vests on a time-based schedule in equal quarterly installments over the first year after issuance. The remaining approximately 57.6 million shares are tied to Google’s actual orders: for every 500 million dollars in revenue that Google generates with custom products from Marvell between the third fiscal quarter of 2027 and the end of fiscal year 2033, Marvell releases another tranche – a total of 240 tranches. The underlying trade agreement between the two companies dates back to July 29, 2026. The warrant is only transferable to controlled subsidiaries, the time-based shares are additionally subject to holding periods, and Google receives customary registration rights for the shares.
Deal covers multiple chip families for Google’s TPU infrastructure
The agreement includes several chip families: AI inference accelerators, memory controllers, network controllers, memory interface controllers, and near-memory compute components, all intended for Google’s TPU ecosystem. Google continues its strategy of scaling AI infrastructure increasingly through custom chips rather than solely through purchased GPUs – a path the search giant is also pursuing with chip financing for Anthropic, where linked loans secure over 200 billion dollars in computing capacity. Other chip manufacturers are also betting on growing demand for specialized inference hardware: earlier in August, AMD acquired the startup Taalas, whose processors embed AI models directly into silicon. For Marvell, the warrant also serves as a binding instrument: the more custom silicon revenue Google generates, the more shares the search company can acquire at a favorable price – an incentive to expand the partnership over years rather than switch suppliers short-term. So far, most of Google’s custom TPU manufacturing has run through Broadcom; with Marvell, a second major supplier now joins the existing partner.
Broadcom loses market share to Marvell
Investors reacted sharply: according to 24/7 Wall St., Marvell stock rose 13 percent to 243.66 dollars, while Broadcom shares fell about three percent to 369.13 dollars. Alphabet shares stayed virtually unchanged at 342.67 dollars. Broadcom had been Google’s most important partner for custom TPU chips and had secured a contract through 2031 back in April 2024. Market observers read the decline as a signal that Google will spread part of its custom-silicon order volume to Marvell going forward, rather than concentrating additional growth solely with Broadcom – a zero-sum shift between suppliers rather than an industry-wide rising tide. The weekly AI stock market week roundup had already flagged Broadcom’s volatility, when the stock fell 5.5 percent with no clear cause of its own.
What matters next is how quickly Google actually triggers the performance-based tranches. Every additional half a billion dollars in Marvell revenue unlocks new shares, and shows directly how serious the search giant is about diversifying away from a single chip supplier. For Marvell shareholders, the structure cuts both ways: incentive and dilution risk at once. If the warrant vests in full, Google’s stake would jump into the mid-single-digit percentage range at a stroke – tied to a revenue volume that, per the vesting formula, would need to run well past ten billion dollars.
