Google Eyes Partnership with Marvell Technology for Custom AI Chip Development

Google Explores New AI Chip Partnership with Marvell Technology

Alphabet's Google division is reportedly exploring a collaboration with semiconductor company Marvell Technology (NASDAQ: MRVL) to develop custom artificial intelligence processors, according to recent industry reports. This potential partnership represents a strategic shift for Google, which has historically worked primarily with Broadcom for its Tensor Processing Unit (TPU) designs.

Details of the Reported Collaboration

According to The Information, Google and Marvell are in discussions to create two distinct chip types. The first would be a new TPU designed specifically for running AI models, while the second involves a memory processing unit that would complement Google's existing TPU infrastructure.

The timeline for this collaboration appears aggressive, with plans to finalize the memory processing unit design by next year and proceed to test production phases. While neither company has officially confirmed these negotiations, Marvell's recent earnings commentary provides supporting evidence for the partnership speculation.

Marvell's Strategic Position in AI Infrastructure

Marvell Technology has experienced significant momentum in 2026, with shares climbing 95% year-to-date and an impressive 227% over the past 12 months. The company's Structera memory controller chip has garnered attention from major cloud providers, with management noting its inclusion in white papers discussing next-generation AI inference architectures.

During March earnings discussions, Marvell executives highlighted "unprecedented activity" across multiple new customer engagements as hyperscale companies accelerate their custom chip development initiatives. The company maintains relationships with the top four U.S. hyperscalers, which includes Google among this elite group.

Market Share Ambitions and Financial Projections

Currently, Marvell holds less than 5% of the custom silicon market, trailing significantly behind industry leader Broadcom. However, company leadership projects increasing this share to 20% by 2028, representing substantial growth potential in the custom AI processor segment.

Marvell's broader data center business, encompassing custom processors, switches, interconnect solutions, and storage, generated $8.2 billion in fiscal 2026 revenue - a 42% annual increase. Management estimates their overall data center market share could reach 20% within the next few years.

Revenue Growth Trajectory

Based on Marvell's addressable market projections of $94 billion, achieving a 20% market share could translate to approximately $19 billion in annual data center revenue by 2028. This would represent more than double the current revenue levels from this segment.

The company currently has over 20 chip designs selected for customer deployment, with production timelines extending into fiscal years 2028 and 2029. Given that Marvell's fiscal 2027 began in February, the reported Google collaboration timeline aligns with these existing development schedules.

Google's Chip Strategy Evolution

Google's TPU development initially focused on internal cloud workloads but has expanded to serve external customers. Anthropic currently deploys Google's TPUs, while Meta Platforms is reportedly considering similar implementations for AI processing needs.

This diversification of chip partners suggests Google aims to reduce supply chain concentration while potentially accelerating innovation through multiple development tracks. The company previously strengthened ties with Broadcom for future custom AI chip development, indicating a multi-vendor approach rather than wholesale partnership changes.

Market Implications and Analyst Perspectives

Wall Street revenue estimates for Marvell project growth reaching $19 billion by fiscal 2029. At current valuation multiples, this growth trajectory could support significant stock price appreciation, though actual performance will depend on execution and market conditions.

The custom AI chip market continues expanding as cloud providers seek specialized hardware for machine learning workloads. Google's potential partnership with Marvell reflects broader industry trends toward custom silicon solutions optimized for specific AI applications.

What Investors Should Monitor

Key developments to watch include official partnership announcements from either company, progress updates on chip design milestones, and Marvell's quarterly reports showing customer engagement metrics. Google's TPU adoption by additional third-party customers would also validate the market opportunity size for Marvell's potential involvement.