Google Expands Marvell’s Chip Role Alongside Broadcom

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.