Alphabet Inc. Receives Warrants for 59 Million Marvell Shares

Alphabet Inc. expanded its custom-silicon partnership with Marvell Technology to procure AI inference accelerators, storage controllers, and network-interface controllers based on Google's Tensor Processing Unit ecosystem. Under the agreement signed on July 29, 2026, Marvell issued Alphabet warrants to purchase 58,970,907 shares—approximately 7% of the company—at a fixed exercise price of $206.58 per share.

The arrangement represents a potential investment of roughly $12.2 billion. The warrants vest in performance-based tranches for every $500 million Alphabet spends on the covered products. While these purchases remain discretionary, full vesting would imply approximately $120 billion in qualifying purchases through early 2033, allowing Alphabet to profit from Marvell's stock growth as a condition of the customer relationship.

This deal follows a similar industry template established in October 2025, when AMD issued warrants for up to 160 million shares to OpenAI in exchange for a GPU supply partnership. The partnership also follows a $2 billion investment in Marvell by Nvidia in March, aligning with Nvidia CEO Jensen Huang's prediction that Marvell could become a trillion-dollar company.