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 specialized TPU built specifically for inference tasks.
Marvell’s stock rose approximately 6% following the mid-April 2026 announcement of these partnership discussions. Broadcom, for its part, saw its shares decline on the news.
What this means for the custom silicon landscape
Marvell now has warrant-based partnerships with two of the three largest cloud infrastructure providers on the planet. It also supplies custom ASICs to Microsoft, making it one of the few semiconductor companies with deep relationships across all three hyperscale giants.
For Google, if Marvell’s custom chips perform well and generate significant revenue, the warrant becomes increasingly valuable as more shares vest. Google gets to buy Marvell stock at $206.58 regardless of where the market price sits at the time.
One detail worth watching: no 8-K or public SEC filing has yet surfaced matching the exact figures of this warrant agreement. Either way, investors should keep an eye on Marvell’s regulatory filings for the formal documentation, which would contain the full vesting schedule and any performance milestones tied to the warrant.