Nvidia announced a $2B strategic investment in Marvell to deepen their AI partnership and accelerate development.
Nvidia is investing $2 billion in Marvell as part of a new AI infrastructure partnership, under which Marvell's custom AI processors and high-speed networking will be integrated into Nvidia's NVLink Fusion platform and data center systems. Marvell will contribute custom XPUs and NVLink Fusion-compatible scale-up networking, while Nvidia supplies supporting infrastructure including Vera CPUs, ConnectX NICs, BlueField DPUs, NVLink interconnects, and Spectrum-X switches in its rack-scale AI systems. The companies will also collaborate on silicon photonics and use Nvidia's Aerial AI-RAN technology to turn telecom networks including 5G/6G into AI-capable infrastructure.
Nvidia CEO Jensen Huang stated that "together with Marvell, we are enabling customers to leverage NVIDIA's AI infrastructure ecosystem and scale to build specialized AI compute." The partnership aims to help Nvidia maintain its central position in booming AI data center demand even as some customers explore non-Nvidia chips. According to analyst Jacob Bourne, the deal gives Nvidia "access to Marvell's semi-custom silicon and advanced optical interconnect capabilities to help scale data center-level AI systems" and "broadens Nvidia's ecosystem to include more specialized silicon."
The market responded positively to the announcement, with Marvell's shares jumping about 7% and Nvidia's about 2.7%. Bourne characterized the deal as "reducing friction" by allowing non-Nvidia AI chips to run in Nvidia-dominated data centers, helping Nvidia "maintain its dominant position" even as the overall AI chip market expands. Reuters notes that Alphabet, Meta and others may spend over $630 billion on AI infrastructure in 2026, a trend likely to boost suppliers like Marvell.
Marvell CEO Matt Murphy said the expanded partnership reflects the "growing importance of high-speed connectivity, optical interconnect and accelerated infrastructure in scaling AI." Marvell, a leading chipmaker for carriers and servers, is well positioned to benefit from the arrangement. Roth Capital commented that the pact supports "expectations of continued strong growth" at Marvell, which itself forecasts revenue rising 40%, resulting in $15 billion by FY2028.