Chip - maker Marvell Technology has officially declared that it will acquire the semiconductor startup Celestial AI for a whopping US$3.25 billion. This acquisition deal is structured as a combination of US$1 billion in cash and 27.2 million shares of Marvell's common stock, which are valued at US$2.25 billion. There's a catch, though. If Celestial AI manages to hit specific revenue milestones, the overall value of this transaction could soar up to as much as US$5.5 billion. The acquisition is projected to be finalized in the first quarter of 2026. Once the deal is sealed, Marvell plans to incorporate Celestial AI's cutting - edge photonic interconnect technology. This move is aimed at solidifying its foothold in the high - bandwidth, low - power, and low - latency data center interconnect sector. Moreover, Marvell has painted a rather rosy picture regarding its performance in the upcoming fiscal year.