Marvell to Buy Lumentum in $115bn AI Deal

US semiconductor company Marvell Technology has entered into a definitive agreement to acquire optical technology manufacturer Lumentum in an all-stock transaction with an implied enterprise value of approximately $115 billion. The announcement, made on November 2, 2026, represents a major development in the technology industry's growing investment in artificial intelligence infrastructure.

Under the agreement, Lumentum shareholders will receive 4.5 shares of Marvell common stock for every Lumentum share they own. The transaction values Lumentum's equity at approximately $102.5 billion, with the higher $115 billion figure representing the deal's enterprise value.

Following the proposed merger, existing Marvell shareholders are expected to own approximately 67% of the combined company, while Lumentum shareholders will hold around 33%.

The acquisition brings together two businesses that provide technologies used in modern data centres and communications networks. Marvell develops semiconductor solutions for data infrastructure, including networking, connectivity and custom computing chips. Lumentum specialises in optical technologies, including high-performance lasers, optical transceivers and other components that help transmit information through light.

The companies say the combination will help them address the growing demand for faster and more efficient connections inside artificial intelligence data centres.

Modern AI systems require enormous computing capacity. Training and operating advanced AI models involves thousands of processors communicating with one another and exchanging large amounts of information. As data centres become more powerful, traditional electrical connections face limitations involving bandwidth, power consumption and heat.

Optical technologies offer an alternative by using light to transmit information. These systems can support high-speed data movement and help improve connectivity between computing equipment.

By combining their respective technologies, Marvell and Lumentum aim to develop more integrated solutions for next-generation AI infrastructure. The companies also expect the combined business to address a broader market covering different types of data-centre connectivity.

Marvell CEO Matt Murphy is expected to lead the combined company after the transaction closes. The companies anticipate completing the acquisition in the first half of 2028, subject to shareholder approval, regulatory clearances and other customary closing conditions.

The proposed deal is not yet a completed acquisition. Both companies must satisfy the required legal and regulatory processes before ownership can officially change.

The announcement also reflects the increasing competition among technology suppliers seeking to benefit from investment in AI infrastructure. As companies such as cloud providers, chipmakers and technology developers expand their computing capabilities, demand for networking and optical components is becoming an increasingly important part of the industry.

For businesses and investors, the transaction highlights how the AI boom is creating opportunities beyond the companies developing AI software. Semiconductor manufacturers, optical technology providers and data-centre infrastructure businesses are also becoming central to the industry's expansion.

The coming years will show whether the combined company can translate its technological capabilities and large proposed market opportunity into sustainable business growth.