Google Ties $12.2 Billion Marvell Warrant to Up to $120 Billion in Chip Purchases
Updated
Updated · The Motley Fool · Aug 21
Google Ties $12.2 Billion Marvell Warrant to Up to $120 Billion in Chip Purchases
3 articles · Updated · The Motley Fool · Aug 21
Summary
$12.2 billion in Marvell warrants granted to Google vest mainly only if Google buys qualifying custom chips, with 240 tranches unlocking per $500 million of recognized revenue.
The structure implies a ceiling of $120 billion in purchases from Aug. 2026 to Jan. 2033, covering products tied to Google's TPU ecosystem, including AI inference accelerators and networking and memory controllers.
Google is not obligated to hit any spending target: the filing says purchases are discretionary, while full vesting and exercise would dilute Marvell shareholders by about 7%.
Marvell shares jumped about 10% on the disclosure, even though the implied annual run rate of roughly $18.5 billion from Google alone would exceed the company's current sub-$10 billion annualized revenue base.