Marvell Celestial AI Acquisition Boosts Data-Center Push
Marvell Celestial AI acquisition adds photonic fabric technology to accelerate data-center connectivity and prompted an extended-trading stock slide.
KEY TAKEAWAYS
- Marvell entered a definitive agreement to acquire Celestial AI for $3.25 billion.
- The deal brings Celestial AI's photonic fabric technology to accelerate Marvell's data-center connectivity strategy.
- Announcement coincided with Q3 earnings and the stock slid in extended trading.
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Marvell Technology (MRVL) announced on Dec. 2, 2025, that it had entered a definitive agreement to acquire Celestial AI. The acquisition will add the startup’s photonic fabric technology to accelerate Marvell’s connectivity strategy for AI and cloud data centers.
Deal Terms, Valuation, and Strategic Timing
Marvell said in a press release at 16:06 ET that it agreed to acquire Celestial AI for $3.25 billion. Secondary reports within 72 hours of the announcement cited a valuation exceeding $5 billion and described the deal as a cash-and-stock combination, though the company did not specify the transaction structure.
Celestial AI develops a photonic fabric platform designed for scale-up optical interconnect inside data centers. Marvell identified this technology as central to strengthening connectivity for next-generation AI workloads.
Marvell announced its third-quarter 2025 earnings on the same day as the acquisition, creating a concurrent corporate-news event. The stock slid in extended trading shortly after the disclosures, reflecting investor focus on both near-term financial results and the company’s statement that the acquisition aims to deepen its data-center connectivity position.
