Rumor
Microsoft Reportedly Discussing Broadcom for AI ASIC Partnership, Shifting from Marvell
Saturday, December 6, 2025 at 12:06 AM
Microsoft is reportedly in talks to move its AI ASIC partnership to Broadcom, potentially replacing Marvell, according to information attributed to *The Information*.
Context
Reports from early December 2025 indicate that Microsoft is in discussions to shift its custom Application-Specific Integrated Circuit (ASIC) development from Marvell to Broadcom. This potential move, initially reported by The Information, suggests Microsoft is exploring supplier diversification for its Azure cloud and AI infrastructure. Marvell currently co-designs the Maia line of ASICs for Microsoft's Azure, while Broadcom has recently secured high-profile custom chip partnerships with companies like OpenAI and Google, positioning it as a strong contender for scaling AI ASIC deployments.
The news has already impacted market sentiment, with Marvell's shares showing weakness and Broadcom's shares ticking higher following the reports. While no specific contract values or confirmed timelines have been disclosed, this potential shift highlights the intense competition and strategic importance of custom chip development in the rapidly evolving AI landscape. The discussions underscore Microsoft's ongoing efforts to optimize its AI capabilities and supply chain.
Sources (7)
Microsoft Negotiates Broadcom Deal for Custom Azure AI ...Microsoft is in talks to shift its custom chip business ...Marvell's Quiet Ascent In AI ASICs Ahead Of Its December 2 EarningsMarvell, Builder of AI Accelerators for Amazon and ...Broadcom: This AI Stock Is Set To Surge From Inference ...Marvell Technology: The Custom Chip Strategy Could ...Marvell Stock Is Down 25% in 2025, and This Analyst Says ...
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