Marvell Technology on Monday said it will buy optical components maker Lumentum to address growing connectivity demands

Marvell Technology on Monday said it will buy optical components maker Lumentum to address growing connectivity demands from the artificial intelligence infrastructure buildout. "AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation," said Marvell Chairman and CEO Matt Murphy in a release. "The companies that move first and help define this transition will set the standard for decades to come." Since the tie-up is a fixed ratio deal with no cash, the value will depend on the price of Marvell shares. The company said the transaction has an implied enterprise value of $115 billion for Lumentum, in a release. Through the acquisition, Marvell said it can combine electrical and optical technologies to meet accelerating and shifting AI connectivity demands across regions and systems. Companies are increasingly relying on optical connections to piece together chips used to run and train large language models.