Marvell Acquires Lumentum In $115 Billion All-Stock Deal

The next $115 billion AI bet isn't on building smarter chips. It's on connecting them. Marvell ($MRVL) has agreed to acquire Lumentum ($LITE) in a $115 billion all-stock deal, bringing together custom silicon, networking technology, and the optical components that power AI infrastructure.

As AI data centers grow, traditional copper connections are reaching their physical limits. The next major bottleneck isn't just computing power. It's how quickly and efficiently thousands of chips and servers can communicate.

Lumentum specializes in lasers and optical transceivers that move data using light, technology increasingly critical to the next generation of AI infrastructure.

Under the agreement, Lumentum shareholders will own approximately 33% of the combined company.

The bigger picture: the AI infrastructure race isn't just about who builds the most powerful chips. It's about who connects them.

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