Marvell In Advanced Talks to Buy Celestial AI in Multibillion Deal

Marvell is in advanced talks to buy Santa Clara-based chip startup Celestial AI in a cash-and-stock deal worth several billion dollars, according to people with knowledge of the deal.

Under the deal being discussed, Marvell would pay several billion dollars upfront for the startup, which has yet to generate any revenue, according to one of the people. Celestial has the potential to receive performance earnouts if it hits certain product milestones, said the same person. The total deal price, including earnouts from product milestones could be higher than $5 billion.

A deal could be announced as soon as Tuesday, the people said.