Marvell issues warrant to Google for 58.97 million shares at $206.58, tied to custom chip revenue

Marvell Technology just handed Google the right to buy nearly 59 million shares of its stock at $206.58 a pop, with one significant catch: the warrant mostly vests as Google generates revenue from Marvell’s custom silicon. The more Google buys and deploys Marvell’s custom chips, the more shares it can purchase at a locked-in price. A playbook Marvell has used before This isn’t Marvell’s first time running this play. Back in December 2024, the company struck a similar warrant agreement with Amazon Web Services. That deal involved 4.18 million shares at an exercise price of $87.7706, with roughly 3.9 million of those shares vesting based on revenue generated through January 2030. The Google warrant is dramatically larger in scope. At 58.97 million shares, it dwarfs the AWS arrangement by more than 14x in share count, and the exercise price sits well above where the AWS warrant was set. Google’s AI chip ambitions are expanding fast The warrant comes amid reports that Google is in advanced discussions with Marvell to co-develop two entirely new types of AI chips. One is a memory processing unit designed to work alongside Google’s existing Tensor Processing Units. The other is a special...