Marvell Technology announced it will develop custom AI chips for Google and gave the company the option to purchase up to a $12.2 billion stake, representing up to 58.97 million Marvell shares at $206.58 each. The agreement builds on Google’s demand for custom tensor processing units and seeks alternatives to Nvidia’s GPUs while positioning Marvell to compete with Broadcom, which has been Google’s primary custom‑chip supplier. Marvell’s shares rose about 8% after the announcement, while Broadcom fell more than 5% and Alphabet’s stock was largely unchanged. The deal could generate roughly $120 billion in revenue through fiscal 2033 if Google meets its targets. Analysts view the arrangement as expanding the market for both companies rather than displacing Broadcom. Morningstar analyst William Kerwin called it a “big win” for Marvell but noted it reflects a growing opportunity for new sources of revenue rather than direct competition. The option is contingent on Google achieving specified performance milestones, and the partnership highlights the increasing interdependence of major cloud providers and chip manufacturers in the AI ecosystem.