AI · 2026-11-04
Nvidia’s Jensen Huang Backs Marvell–Lumentum $115 Billion Deal, Spotlight on AI Optical Connectivity
Nvidia CEO Jensen Huang is reported to have taken a positive view of Marvell Technology’s acquisition of Lumentum. The roughly $115 billion deal underscores how, alongside GPU performance, data transfer and optical connectivity are becoming increasingly important in AI data centers.
Competition in AI data centers does not end with securing faster GPUs. For countless compute units to work together, huge volumes of data have to move quickly and efficiently between them. Against this backdrop, the large-scale merger between Marvell Technology and optical component maker Lumentum is drawing attention. Nvidia CEO Jensen Huang is also reported to have expressed a positive view of the deal.
According to a report citing Bloomberg, Marvell CEO Matthew Murphy and Lumentum CEO Michael Hurlston spoke with Huang before the merger announcement to ask for his opinion on the transaction. Huang reportedly viewed the combination favorably, and Lumentum’s CEO also said Nvidia’s reaction was very positive.
The deal calls for Marvell to acquire Lumentum in a stock swap. The companies said the transaction values the combined business at about $115 billion, with Lumentum’s equity valued at roughly $102.5 billion. Under the terms of the deal, Lumentum shareholders will receive 4.5 Marvell common shares for each share they hold. After the merger, existing Marvell shareholders are expected to own about 67% of the combined company, while Lumentum shareholders will hold about 33%.
Both boards have approved the transaction, and the companies are targeting completion in the first half of 2028, subject to shareholder approval and regulatory clearance. In other words, the merger is not yet complete.
Optical connectivity matters because demand for links inside and outside data centers keeps growing. Traditional copper-based connections can face limits in transmission speed, distance, and power efficiency. Optical technology uses light to transmit data, and its use is expanding not only for GPU connections inside data centers but also for networks linking separate data centers.
Marvell brings semiconductor design and electrical and optical interconnect technology, while Lumentum has strengths in high-performance lasers and optical component manufacturing. By combining forces, the two companies aim to strengthen their product lineup for AI data centers and enhance R&D capabilities. The companies put the potential market size at about $550 billion and expect annual cost savings of more than $1 billion. That said, these are company projections, and actual results could vary depending on the integration process and market conditions.
Nvidia’s moves are also drawing attention. According to Bloomberg, Nvidia invested $2 billion each in Marvell and Lumentum this year. That suggests the company sees data transmission and optical connectivity as core elements of AI infrastructure, not just GPU supply.
Still, as with any major merger, regulatory approvals, shareholder consent, and organizational integration remain pending. Because this is a stock-based transaction, changes in both companies’ share prices and performance after the merger will also be worth watching. This case shows that competitiveness in the AI industry depends not only on compute performance, but also on how efficiently the entire data center is connected and operated.
According to a report citing Bloomberg, Marvell CEO Matthew Murphy and Lumentum CEO Michael Hurlston spoke with Huang before the merger announcement to ask for his opinion on the transaction. Huang reportedly viewed the combination favorably, and Lumentum’s CEO also said Nvidia’s reaction was very positive.
The deal calls for Marvell to acquire Lumentum in a stock swap. The companies said the transaction values the combined business at about $115 billion, with Lumentum’s equity valued at roughly $102.5 billion. Under the terms of the deal, Lumentum shareholders will receive 4.5 Marvell common shares for each share they hold. After the merger, existing Marvell shareholders are expected to own about 67% of the combined company, while Lumentum shareholders will hold about 33%.
Both boards have approved the transaction, and the companies are targeting completion in the first half of 2028, subject to shareholder approval and regulatory clearance. In other words, the merger is not yet complete.
Optical connectivity matters because demand for links inside and outside data centers keeps growing. Traditional copper-based connections can face limits in transmission speed, distance, and power efficiency. Optical technology uses light to transmit data, and its use is expanding not only for GPU connections inside data centers but also for networks linking separate data centers.
Marvell brings semiconductor design and electrical and optical interconnect technology, while Lumentum has strengths in high-performance lasers and optical component manufacturing. By combining forces, the two companies aim to strengthen their product lineup for AI data centers and enhance R&D capabilities. The companies put the potential market size at about $550 billion and expect annual cost savings of more than $1 billion. That said, these are company projections, and actual results could vary depending on the integration process and market conditions.
Nvidia’s moves are also drawing attention. According to Bloomberg, Nvidia invested $2 billion each in Marvell and Lumentum this year. That suggests the company sees data transmission and optical connectivity as core elements of AI infrastructure, not just GPU supply.
Still, as with any major merger, regulatory approvals, shareholder consent, and organizational integration remain pending. Because this is a stock-based transaction, changes in both companies’ share prices and performance after the merger will also be worth watching. This case shows that competitiveness in the AI industry depends not only on compute performance, but also on how efficiently the entire data center is connected and operated.
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#Marvell Lumentum merger#Nvidia Jensen Huang Marvell Lumentum#AI data center optical connectivity#Lumentum acquisition by Marvell#Marvell stock swap deal#optical interconnect technology#AI data transmission infrastructure