Marvell shares jump 9.8% on Google chip design deal
Marvell Technology Inc. today disclosed that it has won a contract to design artificial intelligence chips for Google LLC.
The deal also extends to other areas. Notably, Marvell has issued a warrant that will enable Google to purchase about 59 million units of common stock. The shares are worth $12.2 billion.
Santa Clara, California-based Marvell is a major supplier of data center chips. Its products can be found in optical networks, storage equipment and the hardware security modules in which companies keep their encryption keys. Marvel also has a sizable custom chip development business.
The company stated in a regular filing today that it will help Google develop custom chips “that attach to the TPU ecosystem.” TPUs, or Tensor Processing Units, are the proprietary AI accelerators that power the search giant’s public cloud.
