The semiconductor manufacturer Marvell has announced the acquisition of the startup Celestial AI for an initial amount of $3.25bn, potentially rising to $5.5bn, depending on future results. This move fits into a strategy to strengthen capabilities in optical interconnect technologies, a key area for AI infrastructure. The transaction is expected to close in early 2026, with payments contingent on achieving cumulative revenue of $2bn by the end of 2029.
Celestial AI designs high-performance optical interconnections, better suited to the demands of large language models and data centers than copper cables. With this acquisition, Marvell plans to progressively integrate this technology into customized AI chips and next-generation networking equipment. The deal is expected to bolster Marvell's position against cloud giants investing heavily in optimizing their hardware architectures.
The announcement comes as quarterly results exceeded expectations, lifting Marvell's stock by about 10% in pre-market trading on Wall Street on Wednesday. The group anticipates 25% revenue growth in data centers in 2025 and projects $2.2bn in revenue for the current quarter. Several industry players, including Amazon Web Services, welcomed the move, calling it a catalyst for innovation in optical interconnection applied to AI.
Marvell Technology Group Ltd specializes in designing and marketing integrated communications and storage circuits intended for manufacturers of high-speed network equipment, hard disks, and consumer electronics. Net sales break down by area of application as follows:
- data centers (72.2%): artificial intelligence systems, data storage systems, Ethernet switches, servers, interconnection systems, etc.;
- enterprise networks (10.9%): routers, Ethernet switches, wireless access points, network equipment, workstations, etc. for campuses, small and medium-sized enterprises;
- telecom network infrastructures (5.9%): access multiplexers, Ethernet switches, optical transport systems, routers, wireless radio network access systems, etc.;
- consumer electronics (5.5%): broadband gateways and routers, game console systems, home data storage systems, home wireless access points, personal computer systems, printers and receiver terminals;
- automotive and industrial (5.5%): advanced driver assistance systems, autonomous vehicle systems, embedded network systems, industrial Ethernet switches, video surveillance systems.
Net sales are distributed geographically as follows: the United States (16.6%), China (43.5%), Taiwan (9.7%), Singapore (7.8%), Thailand (5.3%), Japan (2.9%), Malaysia (2.5%), Finland (2%) and other (9.7%).
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