Marvell Technology, Inc. has officially closed its acquisition of Celestial AI, integrating the latter’s Photonic Fabric™ optical interconnect technology into Marvell’s Data Center Group. The deal, announced in late 2025, brings onboard Celestial AI’s team of optical engineers and adds scale-up connectivity solutions designed for high-bandwidth, low-latency AI deployments. This transaction reinforces Marvell’s position as a leader in data infrastructure semiconductors and expands its portfolio beyond electrical interconnects into photonic connectivity.

By incorporating Photonic Fabric™, Marvell gains a complementary technology to its existing silicon-based interconnects, enabling tighter integration and power efficiency for next-generation AI and cloud data centers. The combined product roadmap will address emerging scale-up interconnect requirements, potentially opening a new total addressable market estimated at several hundred million dollars annually within five years. Celestial AI’s optical links are expected to reduce energy consumption per bit by up to 40% compared to traditional copper cables in rack-scale AI clusters.

Marvell forecasts initial revenue contributions from Celestial AI to commence in H2 of fiscal 2028, ramping to a $500 million annualized run rate by Q4 of that year and doubling to $1 billion by Q4 of fiscal 2029. The acquisition reduced Marvell’s cash reserves by $1 billion and will add approximately $50 million in annual non-GAAP operating expenses. Issuance of roughly 27 million new shares increased diluted weighted-average share count, and lower cash balances are projected to decrease other income by about $38 million annually due to reduced interest income.