Marvell Technology, announced it has completed the acquisition of Celestial AI, a company specializing in optical interconnect technology for scale-up connectivity.Celestial AI brings its Photonic Fabric optical interconnect technology, which is designed to deliver high-bandwidth and low-latency connectivity for large-scale AI deployments.
The acquisition expands Marvell’s optical connectivity portfolio and supports the development of more tightly integrated, high-bandwidth, and power-efficient solutions for data center customers. Marvell stated that the transaction adds a new and incremental total addressable market (TAM) in the emerging scale-up interconnect segment.
Matt Murphy, Chairman and CEO of Marvell, said the acquisition aligns with the company’s strategy to provide comprehensive data infrastructure platforms. He noted that as AI systems increase in scale and complexity, customers require advanced connectivity solutions. The Photonic Fabric technology complements Marvell’s existing portfolio and strengthens its ability to meet the connectivity demands of next-generation AI and cloud data center architectures. Murphy also welcomed the Celestial AI team to Marvell.
Celestial AI’s technologies and personnel will be integrated into Marvell’s Data Center Group, enhancing its end-to-end connectivity offerings for future AI systems.
Financial details of the transaction include:
Initial revenue contributions from Celestial AI are expected to begin in the second half of Marvell’s fiscal 2028, with revenue projected to reach a $500 million annualized run rate in the fourth quarter of that fiscal year.
Revenue is forecasted to double to a $1 billion annualized run rate by the fourth quarter of fiscal 2029.
The acquisition is expected to increase Marvell’s annual non-GAAP operating expenses by approximately $50 million.
The transaction reduced Marvell’s cash balance by $1 billion, which is expected to lower future interest income and decrease the company’s Other Income by approximately $38 million annually.
Marvell issued equity to complete the acquisition, increasing its diluted weighted-average shares outstanding by approximately 27 million shares.
