Marvell Acquires Celestial AI for $1B, Expanding Optical Interconnect Capabilities
Event summary
- Marvell completed its acquisition of Celestial AI on February 2, 2026, for $1 billion.
- Celestial AI’s Photonic Fabric™ optical interconnect technology will be integrated into Marvell’s Data Center Group.
- Revenue from Celestial AI is expected to reach $500 million annualized by Q4 fiscal 2028, doubling to $1 billion by Q4 fiscal 2029.
- The acquisition adds $50 million in annual non-GAAP operating expenses and increases Marvell’s diluted shares by 27 million.
The big picture
Marvell’s acquisition of Celestial AI strengthens its position in the AI and cloud data center interconnect market, addressing the growing demand for high-bandwidth, low-latency solutions. This move aligns with the broader industry trend of consolidating critical infrastructure technologies to support next-generation AI deployments. The deal also highlights the increasing importance of optical interconnects in data center architectures, positioning Marvell as a key player in this evolving space.
What we're watching
- Integration Challenges
- How Marvell will integrate Celestial AI’s technology and talent into its existing Data Center Group.
- Revenue Ramp-Up
- Whether Celestial AI’s revenue will meet Marvell’s projected $500 million annualized run rate by Q4 fiscal 2028.
- Market Positioning
- The pace at which Marvell can solidify its leadership in the scale-up interconnect market.
Related topics