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With Celestial AI Buy, Marvell Scales Up The Datacenter And Itself

It was only a matter of time before Marvell was going to make another silicon photonics acquisition, and the $2.5 billion sale of its automotive Ethernet business to Infineon for $2.5 billion has given the company this past summer netted out to about half of the $3.25 billion that the company is shelling out to get its hands on Celestial AI, one of the several upstarts that hopes to hook compute engines, memory, and switches together using on-chip optical engines and light pipes.

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Setting The Stage For 1.6T Ethernet, And Driving 800G Now

Marvell has had a large and profitable I/O and networking silicon business for a long time, but with the acquisitions of Inphi in October 2020 and of Innovium in August 2021, the company is building a credible networking stack that can take on Broadcom, Cisco Systems, and Nvidia for the $1.3 billion or so in switch chips sold into the datacenter each year, which is growing at about 15 percent a year to more than $2 billion by 2026.