Marvell shares gain on report of deal talks with Google to develop two AI chips

Marvell Technology’s shares jumped 7% in premarket trading on Monday following a report that Alphabet’s Google is in talks with the chip designer to develop two new chips aimed at running AI models more efficiently.

The potential deal could involve two distinct chips: a memory processing unit to complement Google’s tensor processing unit ‌and a new ⁠TPU ⁠built for running AI models, The Information reported on Sunday, citing two people with direct knowledge of the discussions.

Big Tech such as Google and Facebook-parent Meta are moving fast to reduce dependence on external chip suppliers by expanding their custom chip efforts.