Google obtained the right to purchase Marvell shares for $12.2 billion

Marvell Technology Inc. and Google (owned by Alphabet Inc.) announced an expansion of their chip-development partnership, under which Marvell granted the search giant the right to purchase up to $12.2 billion of its shares.

Google may buy up to 58,970,907 Marvell shares at $206.58 per share. According to filings, nearly 1.4 million shares will vest in equal quarterly tranches during the first year after the warrant is exercised. The remaining shares will vest based on “discretionary purchases” by Marvell, starting in the third quarter of fiscal 2027 through the end of fiscal 2033, with one tranche vesting for every $500 million in revenue generated from products jointly developed by the companies.

According to the statement, the two companies will collaborate on AI accelerators, storage controllers, network interface controllers, memory interface controllers, and near-memory computing.