What is Marvell Technology acquiring Celestial AI for?

Marvell Technology is acquiring Celestial AI for $3.25 billion in a cash-and-stock deal.

How will Celestial AI's technology benefit Marvell?

Celestial AI's photonic fabric technology will enhance Marvell's data center infrastructure, addressing performance bottlenecks for AI workloads.

What are Marvell's revenue projections for Celestial AI?

Marvell projects Celestial AI to achieve an annualized revenue run rate of $1 billion by Q4 2029.

Home / Business and Economy / Marvell's $3.25B Bet on AI Photonics

Marvell's $3.25B Bet on AI Photonics

6 Dec

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Summary

Marvell Technology acquired Celestial AI for $3.25 billion.
Acquisition aims to boost Marvell's data center AI infrastructure.
Celestial AI's photonics technology addresses AI workload limits.

Marvell Technology has announced a significant acquisition of Celestial AI for $3.25 billion, a deal structured with $1 billion in cash and stock, plus a potential earnout. This strategic move aims to enhance Marvell's leadership in data center infrastructure, particularly as AI workloads intensify and demand cutting-edge solutions.

Celestial AI is recognized for its innovative photonic fabric technology, a critical component for optical interconnects that are becoming essential where traditional electrical systems falter. Marvell anticipates this technology will address the growing performance bottlenecks in next-generation AI systems, projecting substantial future revenue contributions.

The integration of Celestial AI is expected to accelerate Marvell's growth trajectory. The company projects a $500 million annualized revenue run rate from Celestial AI by Q4 2028, doubling to $1 billion by Q4 2029. This acquisition, combined with Marvell's strong Q3 performance and optimistic Q4 guidance, positions the company for sustained relevance in the evolving semiconductor landscape.