Nvidia deal spree continues; Jensen Huang-led company to invest $2 billion in Marvell as AI race heats up
Nvidia, led by Jensen Huang, announced on Tuesday (local time) that it is investing $2 billion in a “strategic partnership” with Marvell Technology, adding that the two chipmakers now plan to partner on silicon photonics technology.
According to a press release, the collaboration between the two chipmakers will connect Marvell to Nvidia’s artificial intelligence (AI) factory and AI-RAN ecosystem through Nvidia’s NVLink Fusion, offering customers greater flexibility and options in designing next-generation systems on Nvidia architectures.
Deal to help customers ‘build scalable, efficient AI infrastructure’
“Together with Marvel, we are enabling our customers to leverage NVIDIA’s AI infrastructure ecosystem and scale to build custom AI compute,” Huang said in a statement. he said.
Commenting on the development, Marvell Chairman and Chief Executive Officer (CEO) Matt Murphy said: “Our expanded partnership with NVIDIA reflects the growing importance of high-speed connectivity, optical interconnect and accelerated infrastructure in scaling AI.”
“By connecting Marvell’s leadership in high-performance analog, optical DSP, silicon photonics and custom silicon to NVIDIA’s expanding AI ecosystem through NVLink Fusion, we enable customers to build scalable, efficient AI infrastructure.”
Nvidia-Marvell partnership
Marvell has emerged as a key player in the AI race. Shares of the company have surged this month after the company issued strong guidance and forecast faster revenue growth through 2027 as demand for artificial intelligence grows. After Nvidia announced plans to invest $2 billion, the chip maker’s shares rose 11%.
The companies will partner with Nvidia’s Aerial AI-RAN for 5G/6G to transform the world’s telecommunications network into AI infrastructure and advance world-class networking for AI, including advanced optical interconnect solutions and silicon photonics technology.
Nvidia is on a partnership spree
Amid rising demand for artificial intelligence and a heated race between businesses, Nvidia has made similar $2 billion bets on other companies over the past few months. CNBC reported. Companies on the list are Synopsys, CoreWeave, Coherent and Lumentum. The Huang-led company recently invested $2 billion in Nebius Group. The artificial intelligence cloud company on Tuesday announced plans to build one of the largest data centers in Europe.
SLB expands ties with Nvidia
Last week, Reuters reported that oilfield services firm SLB had announced plans to expand its partnership with Nvidia to develop artificial intelligence infrastructure and models for the energy industry as the companies look to increase use of the technology.
As part of the expanded collaboration, SLB will serve as the design partner for modular AI data centers built on Nvidia technology. The two companies will also work together to develop the “AI Factory for Energy,” a platform designed to help oil and gas operators and energy companies use AI to analyze and manage large volumes of operational data.
Nvidia has been one of the biggest beneficiaries of the AI boom on Wall Street in recent years, driven by demand for graphics processing units (GPUs) that support large language models.
