Marvell Technology, Inc. announced the Golden Cable Initiative on December 9, 2025, a program designed to fast‑track the development of active electrical cable (AEC) solutions for artificial‑intelligence data centers. The initiative bundles validated reference designs, advanced firmware, and engineering support for partners such as Foxconn Interconnect Technology and Luxshare Technology, with the goal of delivering 1.6 Tbps copper connectivity more quickly than the industry average.
The 1.6 Tbps target addresses the growing demand for short‑reach copper links that deliver higher bandwidth and lower latency in AI clusters. By providing a complete ecosystem—designs, firmware, and support—Marvell reduces design cycles and accelerates adoption of high‑speed AECs, positioning the company as a full‑stack AI infrastructure provider. Partners report that the program has already shortened development timelines, with Foxconn completing a first‑design iteration in just two months.
Marvell’s Q3 FY2026 results underscore the strategic relevance of the initiative. Revenue rose 37% year‑over‑year to $2.075 billion, driven by a 37.8% increase in data‑center revenue, which now accounts for 73.2% of total sales. Non‑GAAP gross margin expanded to 59.7% from 58.5% in the prior year, reflecting pricing power in high‑margin AI‑centric segments and improved operational leverage. Operating margin grew to 36.3% from 34.5%, supported by disciplined cost management and the scale of the data‑center business. Management guided for Q4 FY2026 revenue of $2.20 billion, up from the previous guidance range of $2.15–$2.20 billion, signaling confidence in sustained demand for AI infrastructure.
In parallel, Marvell completed the acquisition of Celestial AI for $3.25 billion, with a potential upside to $5.5 billion. The deal brings advanced photonic interconnect technology into Marvell’s portfolio, complementing its silicon expertise and enabling end‑to‑end AI solutions. The acquisition is expected to add significant recurring revenue and broaden Marvell’s addressable market, reinforcing its competitive position against rivals such as Broadcom and Nvidia.
Investors reacted positively to the combined announcement of the Golden Cable Initiative and the Celestial AI acquisition. Analysts highlighted the strategic fit of photonics with Marvell’s existing silicon platform and the potential to capture a growing share of the projected $1.4 billion AEC market by 2029. The market’s enthusiasm reflected confidence in Marvell’s ability to deliver high‑performance, low‑latency connectivity solutions that meet the bandwidth demands of next‑generation AI workloads.
CEO Matthew Murphy emphasized that the initiative “accelerates the delivery of high‑speed, low‑latency connectivity that is critical for AI workloads.” SVP & GM of Connectivity Xi Wang added that the partnership model “ensures partners can bring 1.6 Tbps solutions to market faster, reinforcing Marvell’s role as a full‑stack AI infrastructure provider.”
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