Nvidia has taken a $2 billion stake in Synopsys and expanded a multi-year partnership to speed up engineering and design workflows using GPU-accelerated computing and artificial intelligence, the companies announced on Monday.

The deal, framed as non-exclusive by both sides, will integrate Nvidia’s CUDA accelerated computing, agentic and physical AI, and Omniverse digital twins with Synopsys’ software across chip design, verification and complex physics simulations.

Nvidia purchased Synopsys common stock at $414.79 per share, which Reuters reported represented a discount of about 0.8 per cent to Friday’s closing price. Synopsys shares rose nearly 5 per cent following the announcement, while Nvidia gained 1.4 per cent.

Jensen Huang, Nvidia’s founder and chief executive officer, said the combination targets simulation at far greater speed and scale than traditional CPU-based workflows. “CUDA GPU-accelerated computing is revolutionising design — enabling simulation at unprecedented speed and scale, from atoms to transistors, from chips to complete systems, creating fully functional digital twins inside the computer,” Huang said in a press release. “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.”

Sassine Ghazi, Synopsys’ president and chief executive officer, said the investment supports broad optimisation of Synopsys applications for Nvidia GPUs while keeping flexibility to work across the semiconductor ecosystem. “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,” Ghazi said. “No two companies are better positioned to deliver AI-powered, holistic system design solutions than Synopsys and Nvidia.”

He added during a press conference that the cash provides “optionality” and that “there is no intention or commitment to use that $2 billion to purchase Nvidia GPUs.”

The companies outlined initiatives to accelerate compute-intensive Synopsys tools using Nvidia CUDA-X libraries and AI physics, advance agentic AI engineering by integrating Synopsys AgentEngineer with the Nvidia agentic AI stack, and expand use of digital twins through Omniverse and Cosmos. They also plan cloud-ready access and joint go-to-market efforts leveraging Synopsys’ sales network and its existing agreement to embed and support Omniverse technologies in Synopsys simulation products.

Both firms stressed the partnership is not exclusive, with Ghazi noting Synopsys remains open to collaborations with other chipmakers, including AMD and Intel. Nvidia’s investment continues a year of deal-making tied to AI, with Reuters highlighting prior stakes and arrangements involving OpenAI, Anthropic and Intel.

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