Making Tech Headlines · Page 2
Marvell Values the Road Between AI Chips Like a Destination
· New York time
Marvell has agreed to acquire optical components maker Lumentum in an all-stock deal with an implied enterprise value of $115 billion. The proposed combination brings together electrical and optical technologies used to move data through computing systems, as demand for AI infrastructure grows. Marvell CEO Matt Murphy says the industry is moving toward optical connectivity and that companies helping define the transition could set standards for years to come. His pitch makes the connection between machines sound almost as consequential as the machines themselves. The deal is an agreement, however, not a completed merger, and its stated value is implied rather than a pile of cash changing hands. The business logic is that powerful chips need fast ways to exchange data. A data center full of expensive processors has a problem if the connections between them cannot keep up. That makes the unglamorous route between the star attractions a potentially valuable place to invest. AI has spent years selling the public on the magic of answers. Now the infrastructure business is making a similarly ambitious case for the plumbing behind those answers. In this version of the future, even the cables get a valuation worthy of a keynote, and the quiet space between two chips has learned to charge admission.
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