US chipmaker Marvell Technology is reportedly in advanced discussions to acquire AI chip startup Celestial AI in a cash-and-stock deal valued at several billion dollars, according to a report by a common news source.
The total deal, which may include earnouts tied to product milestones, could exceed $5 billion. Sources suggest the announcement could come as early as Tuesday. Neither Marvell nor Celestial AI immediately responded to requests for comment, and the report has not been independently verified.
Marvell, a networking chipmaker with a market capitalisation of $78.54 billion according to LSEG data, competes with larger rivals such as Broadcom in providing custom chips and networking solutions. Acquiring Celestial AI would strengthen Marvell’s product portfolio, reflecting the growing demand for advanced computing power.
Celestial AI, backed by a unit of Advanced Micro Devices, raised $250 million in venture capital in March, bringing its total funding to $515 million. The company’s board includes Intel CEO Lip-Bu Tan. Celestial AI focuses on photonics technology, which uses light instead of electrical signals to create faster connections between AI computing chips and memory chips.
The acquisition is expected to help Marvell expand its capabilities in AI chip development and enhance its position in the competitive semiconductor market.
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