Nvidia bets $2 billion on Marvell as rising AI adoption fuels competition
- By Reuters -
- Apr 01, 2026
Nvidia has invested $2 billion in Marvell Technology as part of efforts to make it easier for customers to use the custom artificial intelligence chips that the smaller company designs with Nvidia’s networking gear and central processors.
Shares of Marvell rose about 7% on Tuesday, while Nvidia shares were up 2.7%.
Through the deal, Nvidia aims to ensure it remains central to meeting the growing computing needs required by AI tools at a time when some companies are opting for custom processors instead of its pricey processors.
“Nvidia gains access to Marvell’s semi-custom silicon and advanced optical interconnect capabilities to help scale data center-level AI systems where bandwidth and power efficiency are key bottlenecks,” said Jacob Bourne, analyst at EMarketer.
“It also broadens Nvidia’s ecosystem to include more specialized silicon, which helps Nvidia remain a key access point for increasingly diverse AI workloads.”
“Investors will likely see this deal as reducing friction as it allows AI chips from other suppliers to operate within Nvidia-dominated data centers. So Nvidia can maintain its dominant position while also expanding the scope and utility of the AI semiconductor sector,” Bourne added.
The companies will work on advanced networking solutions for AI, focusing on optical interconnects and silicon photonics technology, which enables high-speed, energy-efficient data transmission.
Marvell will contribute custom chips and networking solutions compatible with Nvidia’s NVLink Fusion, while the AI chip bellwether will supply supporting technologies including central processing units, network interface cards and interconnects.
Big Tech firms including Alphabet and Meta are expected to spend at least $630 billion to build AI infrastructure this year, lifting demand for chips used in servers and networking equipment, and benefiting companies such as Marvell.
Marvell has said it expects revenue to grow nearly 40% and approach $15 billion in fiscal 2028.