Nvidia’s $2B Marvell Bet and Cornelis’ $70M Supercomputer Win Reshape Competition
NVDA•Intel spinout Cornelis' networking chips will link 952 nodes in a $70 million supercomputer, challenging Nvidia's data-center business. Nvidia's $2 billion investment in Marvell in March 2026 fueled a 33% rally for the chipmaker and expands ties in AI infrastructure, potentially altering Nvidia's competitive alliances.
1. Cornelis Wins Supercomputer Deal Threatening Nvidia’s Networking
Cornelis, spun out of Intel in 2020, secured its first major deployment by linking 952 compute nodes in a $70 million Lawrence Livermore National Laboratory supercomputer under a National Nuclear Security Administration program. Its Omni-Path networking chips offer adaptive traffic routing to avoid congestion, positioning Cornelis against Nvidia’s Mellanox and Broadcom products for high-performance data-center interconnects.
2. Nvidia’s $2B Investment in Marvell Deepens AI Infrastructure Ties
In March 2026, Nvidia committed $2 billion to Marvell, backing its optical networking, silicon photonics, and custom AI-chip businesses. The funding helped spark a 33% rally in Marvell shares, lifting its market value toward $277 billion and integrating Marvell’s components into Nvidia’s AI systems, though Marvell still faces a steep path to a $1 trillion valuation.
