Google gets Marvell warrants for AI chips, covering ~7% of shares

Published Aug 22, 03:47 AM UTC

Google (Alphabet) signed an agreement with Marvell Technology on July 29, 2026, covering AI inference accelerators, storage controllers, and other silicon built around Google's TPU chips. In a securities filing, Marvell disclosed it granted Google warrants for 58,970,907 shares (about 7% of the company) at $206.58 per share. Most shares vest as Google spends $500 million increments on covered products, with a smaller portion vesting over the first year regardless of purchases. Google controls the pace and has no obligation to spend. With Marvell stock near $243, the warrants are already worth about $2.1 billion above exercise cost. The structure is similar to AMD's October 2025 deal with OpenAI, where AMD issued warrants for up to 160 million shares. The cost falls on Marvell's existing shareholders through dilution. Google continues working with Broadcom for TPU designs through 2031.