Marvell Technology (MRVL), long seen as a solid but under-the-radar player in the AI chip race, just made its boldest move yet. Last week, the company announced it is buying Celestial AI, a fast-rising startup that uses light instead of electricity to move data inside massive AI data centers, for $3.25 billion in cash and stock.
The deal pushed Marvell’s shares up more than 10% in pre-market trading Tuesday and put the entire semiconductor world on notice: the era of optical connections in AI is closer than most investors thought, and Marvell intends to be at the front of the pack.
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