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Marvell Grants Google Performance‑Linked Warrant That Vest With Chip Purchases

The warrant makes most of Google's potential stake conditional on $500 million revenue steps tied to TPU‑related custom chips.

Overview

  • Marvell disclosed on Aug. 19 that it granted Google a warrant to buy 58,970,907 shares at an exercise price of $206.58 per share.
  • About 1.36 million shares vest on a time schedule and the remaining 57.61 million shares unlock in 240 tranches, with one tranche vesting for each $500 million of qualifying Marvell revenue from Google.
  • The measuring period runs from Aug. 1, 2026 through Jan. 29, 2033 and Google can exercise the warrant through Aug. 18, 2033, so full vesting would require roughly $120 billion of purchases.
  • The purchases that count are discretionary and must be revenue from the custom TPU‑ecosystem products Marvell agreed to build, giving Google control over the pace of vesting.
  • Markets treated the filing as a commercial signal for Marvell — the stock jumped about 10% while Broadcom fell — but the roughly $12.2 billion cost to fully exercise the warrant and the large purchase threshold make meaningful dilution a long‑term, conditional outcome.