"Marvell Technology is about to complete a major strategic acquisition. The company is in advanced talks to acquire Celestial AI, a fast-growing player in photonic interconnects for data centers. This is reported by The Information, supplemented with details from Reuters and MRVL Stock. The negotiations are said to be almost complete, and an official announcement could follow soon. The timing is striking, as Marvell is presenting its third fiscal quarter results today."
"Celestial AI develops photonic technology that allows data flows in AI systems to move significantly faster than through traditional copper connections. The company uses light to enable chips to communicate with each other. This approach is well-suited to the explosive growth and complexity of modern AI models. The current generation of AI workloads regularly encounters the limitations of electrical interconnects, especially as computing clusters are scaled up. Photonics is therefore seen as a crucial technology for making future data centers more efficient."
Marvell Technology is in advanced talks to acquire Celestial AI for several billion dollars, with cash and shares and potential performance-based payments that could push the total above $5 billion. Celestial AI develops photonic interconnects that use light to enable chips to communicate, offering much faster data flows than traditional copper connections. Photonic links address limitations of electrical interconnects in large-scale AI workloads and improve data center efficiency. Bringing photonics in-house would let Marvell integrate optical and electrical solutions with its existing networking chips, SerDes, and switching products, reducing third-party dependence and enhancing appeal to cloud and AI customers.
#mergers--acquisitions #photonic-interconnects #ai-data-center-infrastructure #semiconductor-networking
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