NVIDIA CEO Jensen Huang Said to Have Backed Marvell and Lumentum Deals Before Announcement

According to people familiar with the matter, Marvell Technology Inc. and Lumentum Holdings Inc. secured support from NVIDIA CEO Jensen Huang before reaching a merger agreement worth nearly US$103 billion.

The sources, who asked not to be identified because the details have not been made public, said that before the transaction was announced, Marvell CEO Matthew Murphy and Lumentum CEO Michael Hurlston sought Huang's views in phone calls.

Huang's support underscores how the AI leader is encouraging consolidation among key suppliers, as demand for faster optical connectivity becomes a bottleneck in the construction of increasingly large data centers.

NVIDIA, the main supplier of chips for training and running large language models, earlier this year invested US$2 billion each in Marvell and Lumentum.

"I think the response from NVIDIA was very positive," Hurlston said earlier on Monday in an interview with Fox Business. "We believe that through this collaboration, we can bring more products to NVIDIA faster."

Representatives for NVIDIA, Marvell, and Lumentum did not immediately respond to requests for comment.

Marvell agreed to acquire Lumentum in an all-stock deal valued at US$115 billion including debt, making it the second-largest technology transaction ever and highlighting how AI is driving dealmaking.

The acquisition combines Marvell's custom chips with Lumentum's optical components.

According to people familiar with the matter, the two companies began discussing a potential merger this summer and maintained bilateral negotiations.

The people said Marvell and Lumentum initially planned to announce the deal alongside Lumentum's earnings release on Thursday but moved up the announcement after the news leaked.

"Mike and I have a very similar view of where the world is heading," Murphy said on an investor call discussing the transaction. "We have stayed in touch in work and in life for a long time - Lumentum is a major customer of Marvell. We have had a lot of interaction with their team. Ultimately, that led to this deal."