Marvell and Google sign custom chip agreement with performance-based warrant

Google and Marvell Technology signed a custom chip deal on July 29, and Google received share warrants on August 18. The warrants give Google the right to buy nearly 59 million Marvell shares at $206.58 each.

The chips covered by the deal include AI processors and hardware that supports Google's data centre systems. Google can exercise the warrants until August 18, 2033.

The warrants do not vest all at once. Instead, they unlock in 240 stages, one stage for every $500 million Google spends on qualifying chips. Full vesting requires $120 billion in total spending by January 2033. Google has not promised to spend any fixed amount. If Google reaches that target, the warrants could be worth around $12.2 billion.