Google Gets the Right to Buy $12.2 Billion of Marvell Stock

Google secured a warrant to buy up to 58,970,907 Marvell Technology shares at $206.58 each, worth about $12.18 billion, tied to a commercial agreement covering Google's tensor processing unit (TPU) program. The warrant, disclosed by Marvell on Wednesday, vests in tranches tied to $500 million of qualifying revenue from custom chips sold to Google, with full vesting requiring about $120 billion in purchases by August 18, 2033. Marvell shares rose more than 7% Wednesday morning, while Broadcom shares fell over 5% as investors weighed the expanded partnership.

Google just secured the right to buy nearly $12.2 billion of Marvell stock, and the warrant tells you how hard it wants to lock down custom AI silicon for the next decade. Google didn't just deepen a chip partnership. It bought a clock. Marvell disclosed Wednesday that it issued Google a warrant to buy up to 58,970,907 Marvell shares at $206.58 each, a package worth about $12.18 billion if fully exercised. MarketWatch reported that Marvell shares rose more than 7% Wednesday morning after the filing, while Investor's Business Daily put the premarket jump at about 13%. This isn't free money for Google. It's a hook. According to Marvell's filing, the warrant is tied to a commercial agreement covering Google's tensor processing unit program. The fixed part is small. Just 1,360,867 shares vest in equal quarterly installments during the first year. The rest is the real number: about 57.6 million shares, vesting across 240 tranches tied to revenue from custom chips sold to Google, each tranche worth $500 million of qualifying revenue. The warrant can run until August 18, 2033. Do the math and the message is plain. Google would need to buy about $120 billion of qualifying silicon from Marvell for the whole warrant to vest. That isn't a handshake. It's a purchase funnel with an equity reward sitting at the end of it. TSMC's July sales jumped 45% as AI chip demand keeps outrunning tariffs https://startupfortune.com/tsmcs-july-sales-jumped-45-as-ai-chip-demand-keeps-outrunning-tariffs/ TSMC's July sales rose about 45% year over year, its fastest monthly growth in a year, as AI chip demand keeps flowing through its fabs regardless of tariff threats. The same boom is squeezing memory prices hard enough that Microsoft just raised Xbox console prices for the third time since 2025. - TSMC July sales revenue growth https://startupfortune.com/tsmcs-july-sales-jumped-45-as-ai-chip-demand-keeps-outrunning-tariffs/ - AI chip demand outrunning tariffs https://startupfortune.com/tsmcs-july-sales-jumped-45-as-ai-chip-demand-keeps-outrunning-tariffs/ The chips are not described as a full replacement for Google's TPUs. Marvell said the expanded partnership covers custom silicon programs around Google's TPU systems, including AI inference accelerators, storage controllers, network interface controllers, memory interface controllers and near-memory compute. Those are not glamorous phrases, but they're the parts that decide whether a rack moves data fast enough to justify the money being poured into it. That's the real story here. Everyone wants to talk about the accelerator. The rack only works if memory, networking and storage keep up. Google is buying priority Google already designs its own TPUs, and Broadcom has long been tied to that effort. Broadcom disclosed in an April 6 SEC filing that it had entered a long-term agreement to develop and supply future generations of Google's custom TPUs, plus a supply assurance agreement for networking and other components used in Google's next-generation AI racks through 2031. Financial terms were not disclosed. So the Marvell warrant doesn't mean Broadcom has vanished from Google's roadmap. Don't read it that way. It means Google is making sure one more supplier has a direct financial reason to keep its best engineers and manufacturing attention pointed at Google's AI buildout. When a customer of Google's size attaches vesting to revenue milestones through fiscal 2033, it is not just buying chips. It is buying priority. Frankly, that is why the market reaction made sense. MarketWatch reported Broadcom shares were down more than 5% Wednesday morning, while other reports put the move in a narrower range during the session. Investors were not reacting only to today's revenue. They were reacting to the chance that Google's future TPU ecosystem becomes less dependent on one chip partner. Broadcom is still in the stack There is a cleaner way to frame this than winner and loser. Broadcom remains named in a long-term Google TPU agreement through 2031. Marvell now has a warrant that can vest over seven years if Google keeps ordering custom silicon at enormous scale. Both facts can be true at once. Both tell you the same thing about AI infrastructure: hyperscalers do not want one bottleneck sitting between them and the next model cycle. Nvidia is not named in Marvell's filing, but you can feel its shadow over the whole deal. That's no accident. Google, Amazon and Microsoft have all pushed deeper into custom silicon because relying only on outside GPUs is expensive and risky when AI demand spikes. A $120 billion revenue target attached to one supplier is about as clear as public paperwork gets. Blackstone Pitches Second Mega Debt Deal to Fund Anthropic's Google Chips https://startupfortune.com/blackstone-pitches-second-mega-debt-deal-to-fund-anthropics-google-chips/ Blackstone is in early talks with investors on a second debt package, potentially at least $36 billion, to fund Anthropic's use of Google's TPU chips, following a $35 billion deal struck two months earlier. The financing race comes as Anthropic confidentially files for a US IPO and pushes to go public ahead of OpenAI. - Blackstone debt deal for Anthropic chips https://startupfortune.com/blackstone-pitches-second-mega-debt-deal-to-fund-anthropics-google-chips/ - mega funding for Google TPU infrastructure https://startupfortune.com/blackstone-pitches-second-mega-debt-deal-to-fund-anthropics-google-chips/ Marvell's next earnings report, expected on August 27 according to Investor's Business Daily, now matters more than it did a week ago. Investors will want answers. How quickly can Google revenue show up? How much of the warrant can realistically vest? Can Marvell turn this into durable custom silicon growth, or is this just a one-day stock move? Until then, the filing gives you the number that matters: nearly 59 million shares, seven years, and a customer big enough to make every tranche worth chasing. Also read: Hidden code shows TikTok testing a Venmo-style payments feature in DMs https://startupfortune.com/hidden-code-shows-tiktok-testing-a-venmo-style-payments-feature-in-dms/ • Rapidus Says Its 2nm Chips Will Cost $10,000 Less Than TSMC's https://startupfortune.com/rapidus-says-its-2nm-chips-will-cost-10000-less-than-tsmcs/ • Baidu's Profit Crashed 68% While Its GPU Cloud Business Surged 283% https://startupfortune.com/baidus-profit-crashed-68-while-its-gpu-cloud-business-surged-283/