Nvidia has invested two billion dollars in Synopsys as part of an expanded multi year collaboration to develop new tools that support product design across industries using artificial intelligence. The companies announced the deal on Monday, highlighting their plan to strengthen innovation in chip design and advanced engineering processes.
This investment adds to a series of major partnerships formed by Nvidia in the fast growing AI sector. The company has committed billions of dollars this year to firms linked to artificial intelligence, including agreements that could enable up to one hundred billion dollars of investment in the parent company of ChatGPT and a five billion dollar stake in Intel.
Nvidia bought common stock of Synopsys at four hundred and fourteen point seven nine dollars per share, which is a discount of about zero point eight per cent compared with the company’s closing price on Friday. Synopsys is already a customer of Nvidia, and both companies confirmed that the latest partnership is not exclusive. Synopsys also works with AMD, while Nvidia has ongoing collaborations with Cadence Design.
Cadence shares were slightly lower in premarket trading.
Under the new agreement, Synopsys will use Nvidia’s developer tools and code libraries to support its work across several applications. These include chip design, physical verification, molecular simulations and other electronic design automation tasks.
Synopsys Chief Executive Officer Sassine Ghazi said, “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.”
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