Marvell Technology shares surged over 10% in premarket trading on Tuesday after Nvidia announced a $2 billion investment and partnership. The deal will integrate Marvell’s custom silicon and optical networking into Nvidia’s AI infrastructure. NVIDIA shares rose 1.3%.
The partnership centers on Nvidia’s NVLink Fusion architecture, which connects multiple GPUs for faster data sharing. Marvell will supply custom AI accelerators, known as XPUs, specialized chips for AI processing. These will be paired with networking designed for NVLink Fusion. NVIDIA will contribute its VERA CPU (central processing unit), ConnectX network cards, Bluefield data processing units (DPUs), NVLink interconnects, Spectrum-X switches, and large-scale AI computing systems. Combined, the products give enterprise customers options for building high-performance AI systems, so they are not limited to just one vendor.
The two companies will also collaborate on next-generation telecommunications infrastructure, bringing AI capabilities to 5 G. The companies will also work together on new telecom infrastructure, adding AI features to 5G and 6G networks using Nvidia’s Aerial AI-RAN platform and advanced networking. This telecom focus expands the partnership beyond data center AI to broader communications networks. As AI-powered networks become more common worldwide, this part of the deal is expected to grow in importance. The chipmaker announced this month. Previous deals include similar investments with optical component makers Lumentum and Coherent. The pattern signals a deliberate and accelerating effort by Nvidia to anchor strategic suppliers within its AI ecosystem through direct investment. This approach strengthens Nvidia’s supply chain resilience and deepens the competitive moat around its AI infrastructure. The move comes as token generation demand and AI inference workloads are scaling quickly across the industry.
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