Google in talks with Marvell to build custom AI chips, Marvell stock jumps 5%

On April 20, 2026, Reuters reported Google is negotiating with chip maker Marvell Technology to design two AI-focused chips: a memory processing unit to work alongside Google's existing TPUs (tensor processing units — the AI brains inside data centers), and a new TPU optimized for running AI models. Marvell's stock price rose about 5% on the news.

Google currently relies on Broadcom for chip design support, but is now building its own chips in-house. This mirrors what other major AI companies are doing: Nvidia spent $2 billion on Marvell last month for custom chip development, and Meta recently expanded a partnership with Broadcom. The shift reflects a broader industry move toward vertical integration—companies want to control their entire AI stack rather than depend on a single supplier.

For business professionals and investors: Google's diversification away from Broadcom signals confidence in custom silicon as a competitive advantage in AI. For workers in chip manufacturing and design services: this trend toward in-house chip teams may reduce outsourcing opportunities. For customers of cloud AI services: competition over chip design could eventually lower prices and improve AI performance, though benefits will take years to materialize.