Nvidia is investing $2 billion in Synopsys, a leading provider of electronic design automation (EDA) and simulation software for semiconductor development. The purchase, at $414.79 per share, deepens a multi-year partnership aimed at integrating Nvidia’s AI hardware and computing capabilities into Synopsys’s platform. The collaboration will help transition Synopsys’s software from CPU-based to GPU-based workflows, accelerating chip design and simulation.
The investment boosted Synopsys’s stock, offering reassurance after recent weakness in its IP segment caused by U.S. export restrictions and customer-specific issues. For Nvidia, the deal extends its influence over widely used chip-design tools amid intensifying competition in AI hardware and semiconductor development. The move also follows sell-offs of Nvidia shares by major investors such as SoftBank and Peter Thiel.
The deal reflects a growing trend of circular or strategic investments in the AI sector, similar to OpenAI’s recent stake in Thrive Holdings, where the company embeds teams into portfolio companies while also benefiting from Thrive Capital’s investment in OpenAI itself.
