MRVL.US (MRVL.US) and Google (GOOGL.US) reached a custom AI chip cooperation. Wedbush: Customized silicon “has significant advantages”

The Zhitong Finance App learned that Wedbush Securities said that Mewell Technology (MRVL.US) announced cooperation with Google this week to develop customized AI chips, further confirming that in the current environment, customized silicon chips have significant advantages. Matt Bryson, an analyst at Wedbush Securities, wrote in a research report to clients: “Overall, we don't think this result was completely unexpected. More importantly, we believe this series of news and rumors shows that in the current environment, companies with custom chip design capabilities and IP modules are in an advantageous position.

And given the large number of market opportunities, this isn't necessarily a zero-sum game (for example, Mywell Technology's order doesn't mean that Broadcom — Google's biggest TPU partner — or AMD, or Nvidia is necessarily the loser).”

On July 29, Maywell Technology reached an expanded cooperation agreement on Google's customized semiconductor products. “The expanded cooperation covers a full range of customized chip projects related to the TPU ecosystem, including AI inference accelerators, memory controllers, network interface controllers, storage interface controllers, and near-memory computing,” Maywell Technology stated in the regulatory documents.

As part of the agreement, Maywell Technology issued a warrant to Google on August 18, granting it the right to purchase up to 58.97 million shares at an exercise price of US$206.58 per share.

Additionally, this week, Bryson also expressed his views on possible future TPU cooperation projects between AMD and Google, pointing out that such cooperation may be “significant.”

The scope of products covered by this cooperation far exceeds the single chip category, covering the entire TPU ecosystem such as AI inference accelerators, memory interface controllers, memory interface controllers, and near-memory computing. This marks a shift from the edge to the core of Maywell Technology's role in Google's AI infrastructure.

Analysts at the investment research institute Morningstar pointed out that if all 240 belonging batches are triggered, Maywell Technology may win an order worth 120 billion US dollars for customized chips from Google.

It is worth noting that the cooperation between North American AI chip manufacturers and AI manufacturers is becoming more diverse, and equity bundling is becoming more complex. Nvidia has announced an investment of $2 billion in Mewell Technology; AMD previously reached a similar warrant partnership with Meta. An “AI chip equity network” covering Nvidia, AMD, Mywell Technology, Google, Meta, OpenAI, and Anthropic is being formed.