Home News Marvell to buy chip startup Celestial AI for $3.25 billion to boost networking portfolio

Marvell to buy chip startup Celestial AI for $3.25 billion to boost networking portfolio

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FILE PHOTO: Chipmaker Marvell Technology said it will buy semiconductor startup Celestial AI in a cash-and-stock deal worth $3.25 billion.
| Photo Credit: KSL

Chipmaker Marvell Technology said on Tuesday it will buy semiconductor startup Celestial AI in a cash-and-stock deal worth $3.25 billion, as it looks to upgrade its networking products amid intensifying competition from bigger rivals Broadcom and Nvidia.

Marvell’s shares were down 6% in extended trading.

The generative AI boom has sped up chipmakers’ development process, as they rush to design the fastest, most energy-efficient equipment for advanced data centers.

Under the terms of the deal, Celestial AI will receive $1
billion in cash and 27.2 million shares of Marvell common stock,
having a value of $2.25 billion.

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