Nvidia on Monday announced it has purchased $2 billion of Synopsys‘ common stock as part of a strategic partnership to accelerate computing and artificial intelligence engineering solutions.
As part of the multiyear partnership, Nvidia will help Synopsys accelerate its portfolio of compute-intensive applications, advance agentic AI engineering, expand cloud access and develop joint go-to-market initiatives, according to a release. Nvidia said it purchased Synopsys’ stock at $414.79 per share.
“This is a huge deal,” Nvidia CEO Jensen Huang told CNBC’s “Squawk on the Street” on Monday. “The partnership we’re announcing today is about revolutionizing one of the most compute-intensive industries in the world: design and engineering.”
Synopsys stock climbed 4%. Nvidia shares rose 1%.
Nvidia has been one of the biggest beneficiaries of the AI boom because it makes the graphics processing units, or GPUs, that are key to building and training AI models and running large workloads.
Synopsys offers services like silicon design and electronic design automation that help its customers build AI-powered products.
CEO Sassine Ghazi told CNBC that its partnership with Nvidia will help it take workloads that used to run for weeks and reduce them to hours.
“We’re going through a platform shift from classical, general-purpose computing running on CPUs to a new way of doing computing, accelerated computing running on GPUs,” Huang said. “That old way of doing is going to continue to, to exist, of course, but the world is shifting to this new way of doing computing.”
Nvidia and Synopsys have a long-standing relationship, so Monday’s announcement builds on their existing partnership.
Huang said Nvidia was “built on a foundation of design tools from Synopsys.”
The partnership is not exclusive, which means that Nvidia and Synopsys can still work with other companies in the ecosystem.
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