Marvell to Buy Chip Startup Celestial AI for $3.25 Billion, Bullish on Growth Next Year

Marvell Technology will acquire semiconductor startup Celestial AI at a price of $3.25 billion and anticipates high growth next year, with a 25% increase in the revenue of data centers. The deal will give Marvell advanced photonics technology, which uses light to improve connections between AI chips and memory, an area where it competes with Broadcom and Nvidia. Marvell plans to use this tech in future products and expects Celestial AI to add up to $1 billion in yearly revenue by late 2029. The acquisition is set to close in early 2026, and Marvell has also given Amazon the option to buy its shares based on Amazon’s purchases of photonics products.