Marvell Nears $5B Celestial AI Deal to Challenge Broadcom in Custom Chips
Marvell Technology is finalizing a multi-billion dollar acquisition of AI chip startup Celestial AI, according to people familiar with the matter. The cash-and-stock deal could exceed $5 billion including milestone-based earnouts, with an announcement expected as early as Tuesday.
Celestial AI’s photonics technology—which uses light instead of electrical signals to accelerate data transfer between AI chips and memory—has drawn backing from AMD and Intel CEO Lip-Bu Tan. The startup raised $250 million in March 2025, valuing it at $515 million pre-acquisition.
The MOVE positions Marvell to compete more aggressively with Broadcom in supplying custom chips to cloud providers. The deal coincides with Marvell’s Q3 fiscal 2026 earnings report, suggesting strategic timing for the semiconductor firm’s AI ambitions.
