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.
Google deploys TPUs for training AI models and to respond to user queries, a process known as inferencing, and works with Broadcom to design its chips.
The report signals that Google might be looking to diversify from Broadcom amid surging demand for its chips as businesses seek alternatives to Nvidia’s pricey chips.
Google and Marvell did not immediately respond to Reuters requests for comment.
AI lab Anthropic uses a range of chips, including TPUs designed by Google, to develop and run its AI software and chatbot Claude.
Last week, Meta extended its deal with Broadcom to produce several generations of custom AI processors. The social media giant paid Broadcom $2.3 billion last year for AI chip design and related services.
Both Marvell and its larger rival Broadcom help clients with designing chips, as growing adoption of AI tools boost demand for specialized processors used in advanced data centers powering AI workloads.
Marvell trades at 33.35 times the estimates of its earnings for the next 12 months, compared with 27.84 for Broadcom.
Average stock rating of 44 analysts covering Marvell is “buy” and their median price target is $125, according to data compiled by LSEG.
Marvell is set to add more than $9 billion in its market value of $122.15 billion, if the premarket gains hold.