Google and Marvell announce chip development partnership with warrant agreement

Google has agreed to buy custom AI chips from semiconductor company Marvell Technology in a deal worth $12.2 billion. As part of the agreement, Google will receive warrants to buy nearly 59 million Marvell shares at a fixed price, giving it roughly a 7% stake in the company. Marvell will design the chips specifically for Google Cloud. Google has been building its own AI hardware for some time, partly to rely less on Nvidia, which currently dominates the AI chip market. Google's in-house chips, called TPUs, are intended to compete with Nvidia's products. Marvell's stock rose between 5% and 10% after the announcement. Marvell had previously received a $2 billion investment from Nvidia.