Marvell Buys Data Center Optics Maker for $115 Billion

Chipmaker Marvell is buying optical components maker Lumentum Holdings, which makes parts for connecting servers inside data centers, in an all-stock deal worth $115 billion. After the deal closes, expected in the first half of 2028, Marvell shareholders will own 67% of the combined company. Bloomberg calls it one of the largest tech deals in history. It comes amid explosive growth in the AI data center market.

This is infrastructure for artificial intelligence. There aren't enough optical connections between the servers in data centers, which are being rolled out at a furious pace. So instead of trying to build these connections itself, a major company decided to buy a ready-made supplier. This points to long-term planning of computing capacity, not a short-term chase after hype.