Marvell in Advanced Talks to Acquire Celestial AI

Marvell Technology (MRVL) is reportedly close to finalizing a deal to acquire AI-focused chip startup Celestial AI, according to The Information. Sources say the transaction, including potential earnouts, could exceed $5 billion, with an announcement expected as early as Tuesday.

Celestial AI: A Key Player in Photonic Interconnect Technology

The Photonic Fabric Platform

Celestial AI, headquartered in Santa Clara, is the developer of Photonic Fabric, an advanced optical interconnect platform designed for AI computing systems. Its capabilities include:

Extremely high bandwidth data transfer
Nanosecond-level latencies
Built-in high-capacity memory
In-network compute capabilities
Scalable architecture to support future AI-data-center growth

This technology addresses one of the biggest bottlenecks in modern AI systems: efficient movement of massive data volumes between accelerators, memory, and compute clusters.

Strong Funding Momentum and Strategic Partnerships

Celestial AI recently raised $255M in its Series C1 round (total funding: $520M). The capital is aimed at accelerating:

Commercial deployment of Photonic Fabric
Expansion of manufacturing capabilities
Strengthening supply chain partnerships, including deep collaboration with TSMC
Scaling production to meet exploding demand for next-gen AI infrastructure

The company’s board and backers include major industry players:

Lip-Bu Tan (Intel CEO) — Board Member
AMD Ventures
Samsung Catalyst Fund
BlackRock (BLK)
Fidelity Management & Research

Strategic Fit for Marvell

For Marvell, the acquisition would strengthen its leadership in AI data-center connectivity by bringing in:

Cutting-edge optical interconnect IP
Next-generation memory-compute architectures
Deep partnerships with top semiconductor manufacturers
Strong investor and hyperscaler backing

The deal would position Marvell as a more formidable competitor in the AI-accelerated infrastructure race alongside NVDA, AMD, INTC, and AVGO.