Marvell Technology, a worldwide leader in data infrastructure semiconductor solutions, has announced the successful completion of its acquisition of Celestial AI, a recognized pioneer in optical interconnect technology designed for scale-up connectivity in advanced artificial intelligence systems. As a result of this acquisition, Marvell acquires Celestial AI’s Photonic Fabric optical interconnect solution, designed for high-bandwidth and low-latency connectivity in large-scale artificial intelligence systems.
This acquisition further cements Marvell’s position at the forefront of the key interconnect technologies that enable next-generation AI and cloud data center architectures. With the addition of Celestial AI’s optical interconnect innovations, Marvell is now able to offer its customers an even more comprehensive set of cutting-edge connectivity solutions, which will enable the company to further cement its position at the forefront of the emerging scale-up interconnect market, while also creating a significant and fully incremental new total addressable market (TAM).
“Celestial AI will enable us to advance Marvell’s long-term strategy to deliver the industry’s most comprehensive data infrastructure platforms,” said Matt Murphy, Chairman and CEO of Marvell. “As AI systems continue to scale in size and complexity, customers require innovative connectivity solutions. The addition of Celestial AI’s Photonic Fabric technology platform complements Marvell’s existing portfolio and enhances our ability to address the most demanding requirements of next-generation AI and cloud data center architectures. We are excited to welcome the talented team from Celestial AI to Marvell.”
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Following the close of the transaction, Celestial AI’s technology portfolio and engineering teams will become part of Marvell’s Data Center Group, further strengthening Marvell’s end-to-end connectivity offerings for next-generation AI accelerators and data center infrastructure.
Expected Financial Impact
Marvell expects initial revenue contributions from Celestial AI to begin in the second half of fiscal 2028, with revenue ramping meaningfully in the fourth quarter to a $500 million annualized run rate. Revenue is expected to double to a $1 billion annualized run rate by the fourth quarter of fiscal 2029.
The acquisition is expected to add approximately $50 million in annual non-GAAP operating expenses to Marvell’s current run rate. The completion of the acquisition reduced Marvell’s cash balance by $1 billion, lowering expected interest income in future fiscal periods, which will result in a decrease in the Company’s Other Income by approximately $38 million on an annual basis. In addition, the Company issued equity to complete the acquisition which increased Marvell’s diluted weighted-average shares outstanding by approximately 27 million shares.