Nvidia announces $2 billion investment in California-based Synopsys for advanced chip design solutions

Chip-making giant Nvidia Corp. has invested $2 billion in the stock of chip-design software company Synopsys Inc. as part of a wider engineering and design partnership, marking the latest substantial investment by the company in one of its suppliers. Nvidia purchased the shares at $414.79 each, the company stated in a press release on Monday. This expanded partnership combines Nvidia’s AI and accelerated computing strengths with Synopsys’ engineering solutions to help R&D teams design, simulate, and verify intelligent products more accurately, quickly, and cost-effectively, the chipmaker said. The stake accounts for 2.6% of Synopsys’ total shares. This California-based company is among the biggest providers of software and services for designing electronic components, Bloomberg reported. Synopsys shares were up 7.4% in pre-market trading. The stock has fallen nearly 14% so far this year through Friday’s close. Shares in Nvidia were slightly lower in pre-market trading, it added. What did Jensen Huang say on latest investment? Speaking on the latest partnership, Jensen Huang, founder and CEO of Nvidia, said, “Our partnership with Synopsys harnesses the power of Nvidia accelerated computing and AI to reimagine engineering and design — empowering engineers to invent the extraordinary products that will shape our future.” Meanwhile, Synopsys CEO 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. No two companies are better positioned to deliver AI-powered, holistic system design solutions than Synopsys and NVIDIA. Together we will re-engineer engineering and empower innovators everywhere to more efficiently realise their innovations.” Nvidia's investments Nvidia, the world's most valuable company has invested in several firms amid the artificial intelligence surge, including OpenAI and data centre operators like CoreWeave Inc. It also agreed to invest $5 billion in Intel Corp., a possible competitor, partnering to co-develop chips for personal computers and data centres. What does Synopsys specialise in? Synopsys’ software assists in designing the complex layout of billions of transistors and connectors for modern chips and also verifies that the hardware will function as intended before production begins. This process is essential for creating chips central to artificial intelligence systems, such as those sold by Nvidia. According to Bloomberg Intelligence analyst Niraj Patel, Synopsys’ technology is utilised by a wide range of semiconductor and systems firms, such as Alphabet Inc. and Tesla Inc. This development will enable the company to incorporate more advanced chips into its own design and simulation tools across sectors like automotive, aerospace, industrial, and energy.