Nvidia said it bought $2 billion worth of Synopsys’ common stock as part of a new strategic partnership. Nvidia purchased the shares at $414.79 each, according to the company release.
The partnership will last several years and aims to speed up compute-heavy applications, boost agentic AI engineering, expand cloud access, and launch joint marketing plans, Nvidia said in the release.
Nvidia has been one of the biggest winners of the AI boom because it builds GPUs used to train and run AI models. Synopsys provides silicon design and electronic design automation services to help customers build AI-powered products.
The deal is not exclusive, meaning both Nvidia and Synopsys can continue working with other companies. Both companies will host a press conference at 10 a.m. ET to talk more about the deal.
Reuters also reported that Nvidia’s $2 billion investment is part of an expanded multi-year plan to co-develop new AI-powered tools for designing products across many industries. Nvidia has been announcing many new partnerships lately, raising concerns about circular deals in the AI ecosystem. Synopsys shares jumped 7% in premarket trading, while Nvidia stock dipped nearly 2%, according to Reuters market data.
Nvidia invested to form a long-term partnership with Synopsys to build faster AI, computing tools, and engineering solutions.
Q2. How will the Nvidia–Synopsys partnership help AI development?
The partnership will combine Nvidia’s AI computing power with Synopsys’ chip design tools to create new AI-powered products and design systems.
The partnership will last several years and aims to speed up compute-heavy applications, boost agentic AI engineering, expand cloud access, and launch joint marketing plans, Nvidia said in the release.
AI engineering partnership
Nvidia CEO Jensen Huang said the goal is to combine Nvidia’s accelerated computing and AI with Synopsys’ tools to “reimagine engineering and design,” adding it will help engineers create “extraordinary products that will shape our future”, as stated by a CNBC report. Synopsys stock went up 3% after the announcement, while Nvidia shares rose slightly.Nvidia has been one of the biggest winners of the AI boom because it builds GPUs used to train and run AI models. Synopsys provides silicon design and electronic design automation services to help customers build AI-powered products.
AI tools and chip design
Synopsys CEO Sassine Ghazi said next-gen intelligent systems need engineering solutions that integrate electronics and physics with AI and computing, stating: “The complexity and cost of developing next-generation intelligent systems demands engineering solutions with a deeper integration of electronics and physics, accelerated by AI capabilities and compute”, as noted by CNBC.The deal is not exclusive, meaning both Nvidia and Synopsys can continue working with other companies. Both companies will host a press conference at 10 a.m. ET to talk more about the deal.
Reuters also reported that Nvidia’s $2 billion investment is part of an expanded multi-year plan to co-develop new AI-powered tools for designing products across many industries. Nvidia has been announcing many new partnerships lately, raising concerns about circular deals in the AI ecosystem. Synopsys shares jumped 7% in premarket trading, while Nvidia stock dipped nearly 2%, according to Reuters market data.
FAQs
Q1. Why did Nvidia invest $2 billion in Synopsys?Nvidia invested to form a long-term partnership with Synopsys to build faster AI, computing tools, and engineering solutions.
Q2. How will the Nvidia–Synopsys partnership help AI development?
The partnership will combine Nvidia’s AI computing power with Synopsys’ chip design tools to create new AI-powered products and design systems.
