Marvell Technology, Inc. has officially closed its acquisition of Celestial AI, an optical interconnect technology pioneer that has developed technology to provide super, fast, low, latency AI and cloud data center architecture. This move is a solid step in Marvell’s commitment to the development of next, generation data infrastructure interconnect technologies. Celestial AIs Photonic Fabric optical interconnect technology, together with Marvell’s existing technologies, gives Marvell the ability to offer more integrated, higher, bandwidth, and energy, efficient solutions to data center customers, turning the merged entity into a technology showcase for the nascent scale, up interconnect market and creating a significant, entirely 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.” Celestial AI’s technologies and teams will be integrated into Marvell’s Data Center Group, strengthening its end-to-end connectivity offerings for advanced AI systems and reinforcing its competitive position in AI data center architectures.
Also Read: Lenovo Accelerates Enterprise AI with Agentic AI and xIQ Platforms
Marvell is expecting substantial financial outlays from Celestial AI starting from the second half of fiscal 2028, with a target to reach an annualized run rate of $500 million in the fourth quarter and a target to double that to a $1 billion run rate in the fourth quarter of fiscal 2029. Although the acquisition brings in around $50 million of annual non-GAAP operating expenses and Marvell’s cash balance has been reduced by $1 billion, the number of diluted weighted-average shares outstanding has increased by 27 million, the acquisition highlights Marvell’s focus on growing its AI connectivity offerings.
