Marvell Technology has agreed to buy Celestial AI for about US $3.25 billion, combining cash and company stock. Celestial AI is known for its “Photonic Fabric” — a light-based interconnect system that moves data far faster and with lower energy use than traditional electrical links.
With this acquisition, Marvell aims to lead the shift in AI infrastructure: as AI clusters grow, fast and efficient chip-to-chip communication becomes vital. Celestial’s photonic technology supports this by enabling optical data transfer across chips, memory, and racks — well beyond what copper wiring can handle.
Marvell expects the Celestial-powered products to start generating significant revenue by 2028, targeting a $500 million annual run rate by late 2028, and eventually aiming for $1 billion per year by late 2029.
This move strengthens Marvell’s competitiveness against other big players in AI and cloud infrastructure. By combining its existing chip-making strength with Celestial AI’s breakthrough optical interconnects, Marvell hopes to meet rising global demand for high-bandwidth, low-latency, energy-efficient data centers for AI — potentially reshaping the future of cloud-AI deployments.
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