Marvell gives Google rights to buy up to $12.2 billion in shares for chip purchases

On August 19, 2026, Marvell Technology Inc. agreed to grant Google the right to purchase up to $12.2 billion in shares (58,970,907 shares at $206.58 each) tied to chip purchasing targets through fiscal year 2033. The deal expands their custom chip partnership to include products for Google's tensor processing unit (TPU) ecosystem. Following the announcement, Marvell's stock rose 8%, while competitor Broadcom's stock fell 4%.

Marvell equity purchase rights

• ▪Under the agreement, Google is permitted to purchase up to 58,970,907 shares of Marvell Technology Inc. at a price of $206.58 apiece
• ▪Marvell Technology Inc. shares rose 8% on August 19, 2026, following the announcement of the equity purchase agreement with Google
• ▪Marvell Technology Inc. agreed to give Alphabet Inc.'s Google rights to buy as much as $12.2 billion of its shares in exchange for purchasing chips
• ▪The equity purchase rights granted to Google by Marvell Technology Inc. are tied to chip purchasing targets through the 2033 fiscal year

Google custom chip partnership

• ▪The equity purchase agreement is part of an ongoing partnership between Google and Marvell Technology Inc. to develop custom silicon chips
• ▪In April 2026, Marvell Technology Inc. shares rose following a report by The Information that the company had secured a custom chip deal with Google
• ▪The April 2026 custom chip deal between Google and Marvell Technology Inc. reportedly included a tensor processing unit and a memory processing unit

TPU ecosystem product expansion

• ▪The expanded product agreement between Marvell Technology Inc. and Google includes artificial intelligence inference accelerators, storage controllers, and network interface controllers
• ▪Marvell Technology Inc. stated in a securities filing that its expanded agreement with Google will include products that attach to the tensor processing unit ecosystem

Nvidia chip alternatives

• ▪Technology companies including Google, Amazon, Meta, and Microsoft are developing custom silicon chips specifically designed for artificial intelligence workloads
• ▪The development of custom silicon chips by major technology companies is driven by an effort to find cheaper alternatives to Nvidia chips

Broadcom competitive impact

• ▪Google has collaborated with Broadcom on custom chips for over a decade, expanding that partnership in April 2026
• ▪Broadcom's stock fell approximately 4% on August 19, 2026, following the announcement of the Marvell-Google equity purchase agreement