Marvell Technology disclosed on August 19 that it has expanded its custom chip agreement with Google to develop a series of custom semiconductors for Google's AI systems. As part of the agreement, Marvell issued a warrant to Google, allowing Google to purchase up to 58.97 million shares of Marvell stock at a fixed price of $206.58 per share, totaling approximately $12.2 billion. Google must procure $500 million in custom chips from Marvell for each portion of the warrant to be unlocked, between Q3 FY2027 and FY2033. To fully exercise the warrant, Google would need to procure approximately $120 billion worth of Marvell products during this period. Driven by this news, Marvell's stock price rose by about 10% during intraday trading on August 19, closing near $234. Previously, Google primarily relied on Broadcom to co-design its Tensor Processing Units. This agreement makes Marvell the second largest major supplier of AI chips to Google, causing Broadcom's stock price to fall by approximately 4% to 5% on the same day.