Overview
- Marvell said Celestial AI will receive $1 billion in cash and 27.2 million Marvell shares valued at $2.25 billion, for a total consideration of $3.25 billion.
- The company expects meaningful revenue from the acquisition to begin in the second half of fiscal 2028, reaching a $500 million annualized run rate in Q4 FY2028 and $1 billion in Q4 FY2029.
- Marvell forecast fourth-quarter revenue of about $2.20 billion, slightly above LSEG’s $2.18 billion consensus, as its shares fell roughly 6% in after-hours trading.
- Celestial AI’s photonics replaces electrical links with light to accelerate connections between AI compute and memory, a capability Marvell targets for hyperscale data centers where it competes with Broadcom and Nvidia.
- Celestial AI has raised $515 million to date, including a $250 million round backed by an AMD unit, and counts Intel CEO Lip-Bu Tan as a board member.