Marvell Technology has agreed to acquire Lumentum in a transaction carrying an enterprise value of about US$115 billion, creating one of the largest technology deals on record.
The acquisition combines Marvell's semiconductor and custom AI technology with Lumentum's optical networking products.
Demand for optical connections is growing rapidly as AI data centres require increasingly fast links between massive clusters of processors.
Nvidia has already invested US$2 billion in each company, highlighting the strategic importance of networking technology to the broader AI infrastructure buildout.
The deal reinforces the enormous amount of capital flowing into the hardware supporting generative AI, even as investors become more selective about returns from AI spending.
