Marvell plans to buy Lumentum in a $115 billion bet on moving AI data with light
The chipmaker wants Lumentum's lasers to help AI data centers move past copper wires. The deal still needs stockholder and regulator approval.
Two big chip companies want to become one. Marvell plans to buy Lumentum. The deal values Lumentum at about $115 billion.
Most people have never heard of either company. But their parts sit inside the huge data centers that run today's AI tools.
Here is the problem they want to solve. AI computers pass huge amounts of data back and forth. Much of that data still moves over copper wires. The companies say copper is hitting its physical limits. So the industry is moving to light instead.
Lumentum makes lasers and the parts that turn electric signals into light. Marvell makes chips and network gear that handle the electric side. Together, they say, they can design both sides at the same time. They expect that to bring more speed, better performance and lower power use.
Lumentum owners will be paid in Marvell stock, not cash. After the deal, people who own Marvell stock today will own about 67 percent of the new company. Lumentum owners will own about 33 percent.
Matt Murphy, the head of Marvell, will lead the combined company. He called the move to light "an opportunity that comes along once in a generation".
The deal is not done yet. Stockholders of both companies must vote yes, and regulators must approve it. The companies expect it to close in the first half of 2028.
Open it and check the claim yourself. That is the point.