Marvell Technology will help develop Google’s in-demand custom chips and has given the tech giant the ​option to become one of its biggest investors through a ‌stake purchase of as much as $12.2 billion, in its latest move to tap the AI boom.

Shares of the chipmaker jumped more than 11 percent in premarket trading, while ​larger rival Broadcom — which has been Alphabet-owned Google’s main custom ​chip partner — fell over 2 percent.

Demand for in-house chips such as ⁠Google’s tensor processing units (TPUs) has surged as companies seek cheaper alternatives to ​Nvidia’s graphics processors and technologies better suited for inference, the process of ​running trained AI models.

The new tie-up covers a broad range of chips and related technologies designed to work with Google’s TPU ecosystem, which underpins much of the ​company’s AI infrastructure.

Under the deal, Google received a warrant to buy up ​to 58.97 million Marvell shares at $206.58 apiece.

If fully exercised, the warrant would be worth ‌about $12.18 ⁠billion, according to Reuters calculations. A stake of that size will make Google Marvell’s fifth-largest investor, according to data from LSEG.

Most of the warrant will become available only if Google meets agreed purchasing targets through fiscal ​2033, linking the ​size of its ⁠potential Marvell stake to how much it buys from the chipmaker over time.

The agreement comes weeks after Big ​Tech companies reinforced expectations that they would spend more ​than $700 ⁠billion on AI infrastructure this year, an unprecedented sum that marks a big step up from last year’s $400 billion outlay.

Marvell faces stiff competition from Broadcom, ⁠which ​signed a long-term agreement with Google to develop ​and supply future generations of custom AI chips and other components for the company’s next-generation AI ​racks through 2031.