Google Pays for a Second TPU Foundry — $12.2B Warrant on Marvell
Marvell granted Google a warrant for up to 58.97 million shares at $206.58 — about $12.18 billion if fully exercised — vesting against custom-chip purchases through FY2033. Commercial terms closed July 29; the 8-K is the securities disclosure. Broadcom sold off.
Google has been Broadcom’s largest custom-accelerator customer. A $12 billion option on Marvell is how a hyperscaler pays for a second foundry of TPU-class silicon without a 10-K product launch.
Marvell Technology filed that it granted Google a warrant for up to 58,970,907 common shares at $206.58 — ~$12.18 billion if fully exercised. Reuters and Bloomberg: Google would be about a 7% holder and Marvell’s fifth-largest investor. Nearly 1.4 million shares vest in year one; the rest vest in tranches tied to every $500 million of chips Google buys, through fiscal 2033. The commercial custom-silicon agreement was signed July 29; August 19 is the 8-K / warrant news. Marvell stock jumped as much as ~13–14%; Broadcom sold off as investors priced TPU multisourcing.
Deal sheet
| Piece | 8-K / Reuters / Bloomberg Aug 19 |
|---|---|
| Warrant | 58,970,907 shares @ $206.58 ≈ $12.18B fully exercised |
| Vesting | ~1.4M year one; remainder per $500M of Google chip purchases |
| Horizon | Through FY2033 |
| Commercial close | July 29, 2026 (disclosed Wednesday) |
| What it is not | No stated minimum purchase; filing does not say Marvell replaces Broadcom |
This is supplier equity-for-volume, the same family as Nvidia’s customer-financing stack — not a new TPU generation announcement. Alphabet closed roughly flat; the signal is Marvell vs Broadcom. Not PORTS-Pike (Aug 17), not Gemini 3.7 / Pixel (Aug 12–13).
Limits
- No minimum purchase commitment in the filing.
- Whether the $500M tranches actually print is the test.
- Broadcom’s Google revenue concentration rewrite waits on the next earnings call.