Nvidia Invests $2 Billion in Synopsys, Expanding Computing Power Partnership

words.Nvidia has bought $2 billion of Synopsys common stock and entered a multiyear partnership to speed up compute‑intensive applications, AI‑driven engineering, cloud access and joint go‑to‑market initiatives. The deal values Synopsys shares at $414.79, with Synopsys up about 7% pre‑market and Nvidia down roughly 1%. By embedding Nvidia’s GPU acceleration into Synopsys’ EDA tools, the collaboration aims to shorten chip design cycles, expand Nvidia’s reach in semiconductor design, and boost Synopsys’ AI‑focused product roadmap.

Nvidia Invests

Nvidia CEO Jensen Huang speaks at an event ahead of the COMPUTEX forum in Taipei, Taiwan, June 2, 2024.

Ann Wang | Reuters

Nvidia announced Monday that it has purchased $2 billion of Synopsys common stock as part of a strategic partnership aimed at accelerating computing and artificial‑intelligence engineering solutions.

Under the multiyear agreement, Nvidia will help Synopsys speed up its portfolio of compute‑intensive applications, advance agentic AI engineering, broaden cloud accessibility and co‑develop go‑to‑market initiatives. The transaction valued Synopsys shares at $414.79 each.

“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,” Nvidia CEO Jensen Huang said.

Synopsys stock rose roughly 7 % in pre‑market trading, while Nvidia shares slipped about 1 %.

Tune in at 9:30 a.m. ET as Jensen Huang and Synopsys CEO Sassine Ghazi discuss the partnership on CNBC TV. The interview will be available on CNBC+ and CNBC Pro.

Nvidia has been one of the biggest beneficiaries of the AI boom, thanks to its graphics‑processing units (GPUs) that power the training and deployment of large‑scale AI models.

Synopsys provides silicon‑design and electronic‑design automation (EDA) services that enable customers to build AI‑enabled products. “The complexity and cost of developing next‑generation intelligent systems demand engineering solutions with deeper integration of electronics and physics, accelerated by AI capabilities and compute,” Synopsys CEO Sassine Ghazi said.

The collaboration is non‑exclusive, allowing both firms to continue working with other partners across the ecosystem. A joint press conference is scheduled for 10 a.m. ET to elaborate on the details.

Analysts see the deal as a strategic bet on the convergence of high‑performance computing and design automation. By embedding Nvidia’s GPU acceleration into Synopsys’ EDA tools, semiconductor designers could reduce time‑to‑market for next‑gen chips, a critical advantage as the industry confronts rising design complexity and a shift toward heterogeneous architectures. Moreover, the partnership positions Nvidia to capture a larger share of the lucrative semiconductor‑design market, complementing its dominant position in AI infrastructure.

From a financial perspective, the $2 billion equity purchase represents a sizeable but measured exposure for Nvidia, signaling confidence in Synopsys’ growth trajectory while preserving liquidity for its own R&D pipeline. For Synopsys, the capital infusion and technical collaboration could accelerate its AI‑driven product roadmap, potentially unlocking new revenue streams in automotive, data‑center, and edge‑compute segments.

Original article, Author: Tobias. If you wish to reprint this article, please indicate the source:https://aicnbc.com/13836.html

Like (0)
Previous 12 hours ago
Next 12 hours ago

Related News