Marvell Technology has completed its acquisition of Celestial AI. Celestial AI brings its Photonic Fabric optical interconnect technology, designed to support high-bandwidth, low-latency connectivity across large-scale AI deployments.
This acquisition strengthens Marvell’s leadership across critical interconnect technologies required for next-generation AI and Cloud data centre architectures, and expands its optical connectivity capabilities, enabling more tightly integrated, high-bandwidth, and power-efficient solutions for data centre customers. This positions the combined company to be a technology leader in the emerging scale-up interconnect market, adding a significant and completely 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 centre architectures. We are excited to welcome the talented team from Celestial AI to Marvell.”
Celestial AI’s technologies and teams will now be a part of Marvell’s Data Center Group, strengthening its end-to-end connectivity capabilities for next-generation AI systems.
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 annualised run rate. Revenue is expected to double to a $1 billion annualised 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.
