Marvell shares jump 12% as Google eyes $12.2 billion stake in AI chip deal

Marvell Technology shares jumped more than 12% in premarket trading on Wednesday after the chipmaker expanded its partnership with Google to develop custom semiconductors for artificial intelligence applications. As part of the agreement, Google received a warrant that could allow it to buy up to $12.2 billion worth of Marvell shares.

The deal gives Google the potential to become one of Marvell’s largest investors while deepening cooperation between the companies as demand for custom AI chips accelerates.