Marvell Technology's stock surged 7.60% in post-market trading on Sunday, following multiple reports that Alphabet's Google is in discussions with the semiconductor company to develop new artificial intelligence chips.
According to news reports, Google is in talks with Marvell to design two new chips aimed at running AI models more efficiently. One chip is described as a memory processing unit designed to work with Google's tensor processing units (TPUs), while the other is a new TPU specifically built for running AI models.
The potential collaboration represents a significant business opportunity for Marvell as Google seeks to make its TPUs a viable alternative to Nvidia's dominant GPUs in the AI market. TPU sales have become a key growth driver for Google's cloud revenue, and a partnership with Marvell could accelerate this strategy while providing Marvell with access to a major player in the AI infrastructure space.
