Marvell to Acquire Celestial AI for $3.25B
SANTA CLARA, Calif., Dec. 4, 2025 — Marvell Technology has entered into a definitive agreement to acquire Celestial AI. The acquisition, valued at $3.25 billion, accelerates Marvell’s connectivity strategy for next-generation AI and cloud data centers.
Combined with existing leadership in scale-out and scale-across connectivity, Marvell said, it expects the expanded portfolio to result in the industry’s most comprehensive provider of high-bandwidth, low-power, low-latency solutions for next-generation data center connectivity.
Celestial AI's optical interconnect technology is built on the company's Photonic Fabric platform. A connectivity solution, it enables the disaggregation of compute and memory, which allows each component to be effectively leveraged and scaled. The technology delivers over 25x times greater bandwidth and memory capacity while reducing latency and power consumption by up to 10x compared to existing optical interconnect alternatives and copper, the company said earlier this year.
In announcing the acquisition, Marvell said that the first application of Celestial AI's technology platform will be all-optical scale-up interconnects, as high-speed XPU links transition from copper to optics to meet the reach and bandwidth demands of next-generation rack-scale architectures. Marvell additionally said that Celestial AI is deeply engaged with multiple hyperscalers and ecosystem partners that plan to use Celestial AI’s Photonic Fabric technology in their next-generation scale-up architectures. Based on existing customer traction, Marvell expects Celestial AI’s Photonic Fabric chiplets to be co-packaged with custom XPUs and scale-up switches, ultimately enabling the large-scale commercial deployment of optical interconnect for scale-up connectivity.
Marvell expects revenue contributions from Celestial AI to begin in the second half of fiscal 2028, reaching a $500 million annualized run rate in the fourth quarter of fiscal year 2028, doubling to a $1 billion dollar run rate by the fourth quarter of fiscal 2029.
The transaction is expected to close in the first quarter of 2026. The acquisition follows the completion of Marvell’s sale of its automotive ethernet business to Infineon for $2.5 billion in cash. The sale resulted in a pre-tax gain of $1.8 billion, the company said.
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