Google Ties Up With Marvell on AI Chips to Cut Broadcom Reliance

SoftBank and Ericsson's AI-RAN trial improved spectral efficiency by 25% and user throughput by 50%. Google invested $12.18bn in Marvell Technology for custom AI chips. Comsol plans 5G expansion in South Africa. Telekom Malaysia's Q2 revenue rose 6.8% but net profit fell. Negratín and Telefónica trialed IoT solutions. India may disband the Digital Communications Commission. NTT Data and Palo Alto Networks formed a $1bn cybersecurity alliance.

Broadcom (AVGO) shares rose slightly to $364.14 after a dip tied to Google's deal with Marvell (MRVL). Intel (INTC) and AMD (AMD) stocks fell 1%. Broadcom reported Q2 AI revenue of $10.8B, up 143% YoY, and expects $16B in Q3. ARK Invest bought 55,548 AVGO shares. AVGO is up 5% YTD, while MRVL surged 180%.

Marvell Technology partnered with Google to develop AI chips, with Google having an option to acquire a $12.2B stake. The deal focuses on hardware compatible with Google's TPUs, with Google holding a warrant for 58.97M shares at $206.58 each, exercisable by meeting procurement milestones by 2033. This follows a surge in AI infrastructure spending, with tech companies expected to invest over $700B this year.

Amazon plans to expand Prime Air drone deliveries to 500 U.S. cities by year-end, with constraints on range and locations. Stripe acquires OpenRouter for $7.5B (per NYT) to enhance AI routing capabilities. Google's Alphabet agrees to a $12.2B share purchase deal with Marvell for custom AI chips, impacting Broadcom's stock. Other tech news includes Meta's child safety trial, OpenAI's IPO plans, and Rivian's e-bike spinoff valuation.

Broadcom (AVGO) fell 4.61% after BofA warned its AI financing platform could expose it to $370B in potential losses if fully scaled. Meanwhile, Marvell (MRVL) secured a $12.2B Google deal, raising concerns about Broadcom's dominance. Broadcom's growth now partly relies on its own lease guarantees for AI chip demand.

Broadcom shares fell 4.61% after Google expanded its chip partnership with Marvell, wiping $87 billion off its market cap. Marvell rose 9.85%. Broadcom's AI chip revenue grew 143% YoY to $10.8B in Q2, with Q3 growth projected at over 200%.