Marvell Technology is reportedly in talks to acquire optical and photonic developer Lumentum in a deal that could be worth tens of billions of dollars.

According to Bloomberg, talks are at an advanced stage with a deal potentially being announced as early as next week.

Neither party commented on the reports, but any potential deal would be seismic in the blossoming optical data center interconnect space.

Lumentum’s market cap at the time of writing is around $89 billion, while Marvell is valued at around $220 billion. Nvidia CEO Jensen Huang though thinks it could go higher, labeling Marvell as the “next trillion-dollar company.”

Both parties enjoy Nvidia backing, though it’s Marvell that has made some of the biggest strides to capture the AI data center optical connectivity market, culminating in being crowned the company to beat in this space by Gartner.

Its most recent financials saw near-packaged optics (NPO) being a major driver in its $1.5 billion revenue-guide increase for financial year 2028, while CEO Matt Murphy expects connectivity beyond rack to rack connections (scale-out) to “broaden as hyperscalers build significantly larger AI clusters that increasingly span multiple data centers.”

Any potential deal for Lumentum would be the latest in a growing number of acquisitions to bolster Marvell’s interconnectivity play, though the Michael Hurlston-led firm would likely cost vastly more than the $3.25 billion it paid for Celestial AI. That was followed by the purchase of silicon photonics device startup Polariton Technologies, though that fee was undisclosed.

Marvell’s reported Lumentum deal would differ in that the latter manufactures its own indium phosphide (InP) lasers – which feature in Nvidia’s Spectrum-X and Quantum-X networking switches. Where Marvell is fabless, Lumentum is actively building out production capacity amid a dearth of laser supplies, with plans including a 240,000-square-foot manufacturing facility in Greensboro, North Carolina.