Nvidia has made a $2 billion investment in Marvell Technology to strengthen its artificial intelligence (AI) ambitions.
The deal brings Marvell deeper into Nvidia’s AI ecosystem, making it easier for customers to build AI systems using both companies’ technologies.
It will also cover key areas like silicon photonics and telecom networking, which are needed to scale next-generation AI data centres.
“The inference inflection has arrived. Token generation demand is surging, and the world is racing to build AI factories,” Nvidia CEO Jensen Huang said.
“Together with Marvell, we are enabling customers to leverage NVIDIA’s AI infrastructure ecosystem and scale to build specialized AI compute.”
Marvell shares jumped in early trading after the announcement, showing strong investor confidence in the partnership.
The investment is part of Nvidia’s wider strategy to support companies across the AI supply chain. It has recently backed firms such as Synopsys, Coherent, Lumentum and Nebius Group.
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Some analysts, including Goldman Sachs and Morgan Stanley, have warned that such investments could create an “increasing circularity” in the AI industry.
Nvidia, however, says its investments are small compared to its overall business and that most partner revenues come from outside customers.
For Marvell, the deal strengthens its role in solving a major AI challenge. This includes connecting large numbers of chips inside data centres.
The partnership also highlights a growing focus on faster data movement, not just processing power, as companies race to scale AI systems.