Google Takes Marvell Stock Warrants Instead of a Standard Chip Order

Google has lined up Marvell as a custom silicon partner, but the deal has a feature not found in a typical purchase order: Google is being paid, in part, in Marvell stock warrants. A warrant gives the holder the right to buy shares at a fixed price later, letting Google benefit if Marvell's stock rises after the chip partnership becomes public knowledge. The arrangement is one of several new custom-chip partnerships Google has struck this summer as it looks to reduce reliance on Nvidia for specialized processors used in its data centers. Marvell shares have been under separate scrutiny after a Seeking Alpha analysis downgraded the stock's risk-reward profile even while raising its outlook estimates. What's unresolved is the exact size and strike price of the warrant grant, and how much of Marvell's future chip revenue with Google depends on hitting specific order volumes.