Marvell Technology, Inc. (NASDAQ:MRVL) shares jumped nearly 11% in pre-market trading on Wednesday after the semiconductor company disclosed a warrant agreement with Google connected to an extensive custom silicon partnership.
Under the agreement, dated Monday, Marvell granted Google a warrant giving it the right to acquire up to 58,970,907 shares of Marvell common stock at an exercise price of $206.58 per share. Exercising the full warrant at that price would represent a potential investment of approximately $12.2 billion.
The warrant was issued on August 18, 2026, and remains exercisable until August 18, 2033.
Partnership Covers Google’s TPU and AI Infrastructure
The agreement encompasses multiple custom silicon programmes associated with Google’s TPU ecosystem and broader computing infrastructure.
These include AI inference accelerators, storage controllers, network interface controllers, memory interface controllers and near-memory computing products.
The arrangement potentially gives Marvell substantial exposure to Google’s continued investment in custom chips and AI infrastructure, with much of the warrant vesting directly linked to future purchases of Marvell products.
Most Warrant Shares Tied to Google Spending
Of the 58,970,907 shares covered by the warrant, 1,360,867 are scheduled to vest in equal quarterly instalments during the first year following the agreement.
The remaining shares are performance-based and will vest according to Google’s discretionary purchases of eligible custom products.
One tranche will vest for every $500 million of custom product revenue recognised by Marvell between its third quarter of fiscal 2027 and the end of fiscal 2033.
This structure closely connects Google’s potential ownership position in Marvell with the amount of business generated through the companies’ custom silicon relationship.
Warrant Runs Until August 2033
The warrant cannot generally be transferred to parties other than controlled affiliates without Marvell’s approval.
Google also received customary registration rights covering the warrant shares, although those securities remain subject to applicable securities laws and specified restrictions relating to trading volumes.
Marvell issued the warrant using the registration exemption provided under Section 4(a)(2) of the Securities Act of 1933.
The details were disclosed in a Current Report on Form 8-K filed by Marvell Technology, with the market reacting positively to the potential scale and duration of the custom chip relationship with Google.
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