Superpower Daily
Cisco and Nvidia Move Secure AI Factory to Rack Scale, Targetin...OpenAI’s Jalapeño Claims 1.5–1.9x More AI Work Per Watt, Faces...Tiangong Ultra Runs 100m in 8.86 Seconds, Then Hits a Stopping...Amazon OpenSearch Puts Trace and Service-Map Widgets Into MCP A...Stanford Finds a 19% Employment Gap for Young Workers in AI-Exp...Kimi.ai Uses TiDB for One-Second Agent Databases and Persistent...Cisco and Nvidia Move Secure AI Factory to Rack Scale, Targetin...OpenAI’s Jalapeño Claims 1.5–1.9x More AI Work Per Watt, Faces...Tiangong Ultra Runs 100m in 8.86 Seconds, Then Hits a Stopping...Amazon OpenSearch Puts Trace and Service-Map Widgets Into MCP A...Stanford Finds a 19% Employment Gap for Young Workers in AI-Exp...Kimi.ai Uses TiDB for One-Second Agent Databases and Persistent...
Businesspublished

Google Expands Marvell’s Chip Role Alongside Broadcom

Google’s supplier expansion creates a competitive question for Broadcom, while three widely cited AI-financing figures describe an active deal, an analyst projection, and an unconfirmed proposal—not one pool of committed capital.

By 3 min read
Google Expands Marvell’s Chip Role Alongside Broadcom
Sign in to save and react

Listen to this story

The audio brief

About 1:39
0:001:39
Read transcript
Google has expanded Marvell’s role in its custom-chip program, reaching into AI accelerators, networking, and memory—while current Broadcom projects continue. Broadcom shares fell about 2 percent in premarket trading, reflecting a competitive concern rather than evidence of lost revenue. The immediate issue is supplier leverage: with Marvell handling more of the chip stack, Google may have another source of capacity and pricing pressure could increase for Broadcom. Marvell also received a warrant for nearly 59 million shares at 206 dollars and 58 cents each. If Google meets purchase milestones through fiscal 2033 and the warrant is fully exercised, it could be worth about 12.2 billion dollars. Separately, several much larger AI-financing numbers are circulating, and they should not be combined. Broadcom, Apollo Global Management, and Blackstone launched a financing platform whose first 35-billion-dollar deal is meant to support more than one gigawatt of Anthropic capacity. Bank of America analysts estimate that a financing mechanism using Broadcom technology could eventually reach 370 billion dollars in senior debt by 2029. That is an estimate—not Broadcom revenue or confirmed borrowing. Bloomberg also reported that Broadcom is seeking up to 100 billion dollars in debt financing for an AI-chip deal, but that proposal remains unannounced and unconfirmed. Against that backdrop, Broadcom reported 10.8 billion dollars in second-quarter AI-semiconductor revenue, up 143 percent. The open question is how future Google allocations evolve as Broadcom targets 16 billion dollars in AI-chip revenue next quarter.

Story brief

3 key points

Google's broader custom-chip partnership with Marvell gives it another supplier across AI accelerators, networking, and memory, while existing Broadcom work continues. The immediate implication is potential supplier leverage—not a demonstrated hit to Broadcom revenue. Marvell's warrant for 58,970,907 shares at $206.58 ties the relationship to purchase milestones through fiscal 2033. The move comes as Broadcom...

  1. 01

    Marvell’s warrant could be worth about $12.2 billion if fully exercised and all purchase milestones are met through fiscal 2033.

  2. 02

    Broadcom’s fiscal second-quarter revenue rose 48% to $22.19 billion; AI semiconductor revenue grew 143% to $10.8 billion.

  3. 03

    Broadcom guided for $16 billion in AI semiconductor revenue and $29.4 billion total revenue in fiscal Q3.

Broadcom shares fell roughly 2% in premarket trading after Google expanded Marvell’s custom-chip role into accelerators, networking, and memory technologies. The move broadens Google’s supplier roster, but it does not indicate that Google has discontinued current Broadcom projects.

A wider role, not a replacement

Google’s expanded work with Marvell reaches several parts of the custom-chip stack, from AI accelerators to networking and memory technologies. That creates the possibility of more supplier competition and pricing pressure for Broadcom before any significant effect on its revenue appears, according to the source’s risk assessment.

Marvell also granted Google a warrant for 58,970,907 shares at an exercise price of $206.58. It could be worth about $12.2 billion if fully exercised and if purchase milestones through fiscal 2033 are met.

Three financing figures with different meanings

The supplier question is being discussed alongside much larger financing numbers tied to Broadcom technology. They describe different things: a platform’s first deal, a Bank of America forecast for senior debt, and a reported Broadcom borrowing plan that has not been confirmed.

How to separate the numbers

  • Broadcom, Apollo Global Management, and Blackstone introduced an AI financing platform in June. Its first $35 billion deal is intended to support more than one gigawatt of Anthropic capacity.
  • Bank of America analysts estimate that a financing mechanism using Broadcom technology could reach $370 billion in senior debt by 2029. The estimate is not a Broadcom sales forecast and may not be debt on Broadcom’s balance sheet.
  • Bloomberg sources said Broadcom is seeking up to $100 billion in debt financing for an AI chip-related deal supporting Anthropic and unnamed other companies. The proposed transaction has not been announced or confirmed.

The reported borrowing proposal could include $60 billion to $70 billion in senior notes and about $30 billion in junior notes. Blackstone and Apollo are reportedly among the investors Broadcom hopes will provide funds; OpenAI may be among the companies the financing would support.

The scale Broadcom is trying to sustain

Broadcom reported fiscal second-quarter revenue of $22.19 billion, up 48% from a year earlier. AI semiconductor revenue was $10.8 billion, up 143%, placing the Google supplier expansion against a period of rapid reported growth in Broadcom’s AI chip business.

For its fiscal third quarter, Broadcom guided to about $29.4 billion in total revenue and $16 billion in AI semiconductor revenue. Those are company forecasts, not results, and the effect of Google’s wider supplier base on future allocations remains unresolved.

Sources

  1. ts2.techBroadcom Shares Exposed to Google Supplier Concerns as $370 Billion in AI Funding Projected
  2. siliconangle.comBroadcom reportedly seeking up to $100B in debt financing for AI chip deal - SiliconANGLE

Related coverage

Continue reading