Nvidia has invested $2 billion in chip design software leader Synopsys, expanding a long-standing strategic partnership aimed at accelerating artificial intelligence development and compute-heavy engineering processes. The move positions Nvidia as the seventh largest shareholder in Synopsys and deepens their collaboration in one of tech’s most critical innovation frontiers.
“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 collaboration builds on years of technical alignment between the two companies. Huang noted that Nvidia’s foundation was built on Synopsys’ design tools—a relationship that has only grown more critical with the rise of AI and custom silicon.
The deal, announced Monday, sees Nvidia purchasing approximately 4.8 million shares at $414.79 each through a private placement—a slight discount to the stock’s prior closing price.
Under the expanded agreement, Synopsys will integrate Nvidia’s developer tools, AI libraries and GPU-accelerated platforms to boost its electronic design automation (EDA) software and chip development workflows. The companies will also launch new go-to-market strategies and scale access to GPU-powered cloud infrastructure for AI workloads.
For Synopsys, the investment brings a powerful partner at a pivotal time. The company recently flagged weakness in its intellectual property business due to export controls and reduced activity from a major customer, widely reported to be Intel.
The agreement is non-exclusive. Synopsys remains a supplier to AMD and others, while Nvidia also works with Synopsys’ main competitor, Cadence Design Systems. Still, the expanded partnership underscores the growing demand for tightly integrated AI and hardware design ecosystems.
Following the announcement, Synopsys shares rose 4%, while Nvidia gained 1%—a reflection of investor confidence in the deepening alliance between two AI powerhouses.