Nvidia has purchased $2 billion of Synopsys’ common stock as part of a strategic, multi-year partnership.
The collaboration is designed to accelerate compute-intensive applications, advance AI engineering, expand cloud access, and develop joint go-to-market initiatives.
Nvidia paid $414.79 per share for Synopsys stock as part of the agreement.
Revolutionizing Compute-Intensive Industries
“This is a huge deal,” Nvidia CEO Jensen Huang told CNBC.
“The partnership we’re announcing today is about revolutionizing one of the most compute-intensive industries in the world: design and engineering.”
The partnership targets industries that rely heavily on design and simulation, including semiconductors, automotive, aerospace, and electronics.
Synopsys provides silicon design and electronic design automation (EDA) services, helping customers build AI-powered products efficiently.
CEO Sassine Ghazi explained that the collaboration will reduce workloads that previously took weeks to just hours.
The Shift to Accelerated Computing
Huang described a “platform shift from classical, general-purpose computing running on CPUs to a new way of doing computing, accelerated computing running on GPUs.”
He emphasized that while traditional computing will remain, the world is increasingly moving to GPU-accelerated approaches.
Nvidia has been a major beneficiary of the AI boom due to its graphics processing units (GPUs), which are essential for AI model training and large-scale computation.
Existing Collaboration and Industry Implications
Nvidia and Synopsys have a long-standing relationship, with Nvidia being “built on a foundation of design tools from Synopsys,” according to Huang.
The new partnership is not exclusive, allowing both companies to continue working with other players in the ecosystem.
The deal is expected to enhance AI and engineering capabilities for clients and solidify Nvidia’s position in the rapidly evolving AI and accelerated computing sectors.
