Nvidia invested $2 billion in Synopsys, a maker of chip design software, as part of an expanded multi-year alliance to jointly develop new tools to design products in various industries using its AI technology.
The agreement, announced by the companies this Monday, adds to the series of new alliances by Nvidia in the artificial intelligence ecosystem, amid concern about the growing proliferation of circular agreements.
Synopsys shares rose 7% in the pre-market session, while Nvidia shares fell almost 2%.
The world’s most valuable company invested billions of dollars this year in companies linked to the burgeoning AI sector, from deals allowing an investment of up to $100 billion in OpenAI, ChatGPT’s parent company, to a $5 billion stake in Intel.
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This involves the agreement between Nvidia and Synopsys
Synopsys customer Nvidia acquired the company’s common stock for $414.79 per share, the companies said Monday, representing a discount of approximately 0.8% from Friday’s last closing price.
The alliance is not exclusive, the companies indicated. Synopsys counts AMD as a client, while Nvidia works with Cadence Design, a rival to the electronic design automation (EDA) firm.
Cadence shares traded slightly lower in the pre-market.
Under this alliance, Synopsys will use Nvidia’s suite of developer tools and code libraries to work on its applications, which span chip design, physical verification, molecular simulations and other EDA-related processes.
“The complexity and cost of developing next-generation intelligent systems demand engineering solutions with greater integration of electronics and physics, accelerated by AI and computing capabilities,” said Sassine Ghazi, CEO of Synopsys.
With information from Reuters
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