NVIDIA Corporation (NVDA.US) received a $2 billion investment and established a strategic partnership! Marvell Technology, Inc. (MRVL.US) also saw a pre-market increase in response to this news.

NVIDIA Corporation (NVDA.US) announced a $2 billion investment in Marvell Technology, Inc. (MRVL.US), and the two companies also revealed a strategic partnership to connect Marvell Technology, Inc. to NVIDIA Corporation's AI factory and AI-RAN ecosystem through NVIDIA Corporation's NVLink Fusion. Boosted by this news, pre-market on Tuesday, as of the time of writing, Marvell Technology, Inc. rose by over 8% and NVIDIA Corporation rose by over 1%. In their statement, the two companies mentioned that Marvell Technology, Inc. will provide custom AI accelerators (XPU) and scale-up networks compatible with NVLink Fusion, while NVIDIA Corporation will provide its Vera CPU, ConnectX NIC, BlueField DPU, NVLink interconnect technology, Spectrum-X switches, and rack-level AI computing power. Additionally, the two companies will collaborate to advance telecommunications networks and introduce AI infrastructure, including providing NVIDIA Corporation's Aerial AI-RAN for 5G and 6G and AI-centric world-class network solutions. NVIDIA Corporation's founder and CEO Jensen Huang stated, "The tipping point for inference has arrived. Token generation demand is surging, and AI factories are being rapidly built around the world. By working with Marvell Technology, Inc., we are helping customers leverage NVIDIA Corporation's AI infrastructure ecosystem and scale specialized AI computing." Marvell Technology, Inc.'s CEO and Chairman, Matt Murphy, said, "Expanding our partnership with NVIDIA Corporation reflects the growing importance of high-speed connectivity, optical interconnect, and acceleration infrastructure in expanding AI. By connecting Marvell Technology, Inc.'s leading position in high-performance analog, digital signal processing, silicon photonics, and custom chips with NVIDIA Corporation's expanding AI ecosystem through NVLink Fusion, we enable customers to build scalable, efficient AI infrastructure." It is worth mentioning that the $2 billion investment in Marvell Technology, Inc. is NVIDIA Corporation's third investment of this scale this month. Previously, the company announced deals with Lumentum (LITE.US) and Coherent (COHR.US). Earlier this month, NVIDIA Corporation announced $2 billion investments in Lumentum and Coherent each, aiming to strengthen its data center chips with related technologies to better meet the growing demand for faster AI processors in the market. These partnerships include NVIDIA Corporation providing billions of dollars in procurement commitments and securing future production capacity and technology usage rights for advanced laser and optical communication products from the two companies. These investments will help the companies support research and development, expand production, and operations, while also driving their U.S. manufacturing capabilities.