Marvell in advanced talks to acquire Lumentum for AI expansion

Marvell Technology Inc. is in advanced negotiations to acquire Lumentum Holdings Inc., a data center optics manufacturer, according to individuals with knowledge of the matter. The potential deal, which could be a significant acquisition in the AI sector, aims to bolster Marvell's position in the rapidly growing artificial intelligence market. The transaction is part of a broader trend of consolidation as companies seek to scale up their capabilities in AI technologies. Lumentum, known for its expertise in optical components, could provide Marvell with critical technology to enhance its data center offerings. The deal, which is expected to close by year-end 2026, is seen as a strategic move to strengthen Marvell's competitive edge in the AI race. No financial terms were disclosed, but industry insiders suggest the deal could be worth several billion dollars. This acquisition underscores the increasing importance of optical technologies in the advancement of AI systems.