Nvidia announced that it has purchased 2 billion dollars of common shares of the software provider for semiconductor manufacturers Synopsys, as part of a strategic partnership to accelerate IT and engineering solutions artificial intelligence.
As part of the multi-year partnership, Nvidia will help Synopsys to accelerate its portfolio of compute-intensive applications, to promote the engineering of agentic artificial intelligence (i.e. focused on autonomous decision making and action)expand access to the cloud and develop joint go-to-market initiatives. Nvidia said it bought Synopsys shares at $414.79 a share.
“Our partnership with Synopsys leverages the computing power accelerated and artificial intelligence from Nvidia to reinvent engineering and design, enabling engineers to invent extraordinary products that will shape our future,” Nvidia CEO Jensen Huang said in a statement.
Synopsys shares jumped about 7% in premarket trading at Wall Streetwhile those of Nvidia fell by about 1%.
Nvidia has been a major beneficiary of the AI boom because it makes the graphics processing units, or GPUs, that are critical for building AI models and running large workloads.
Synopsys offers a range of engineering solutions, including the design of silicon and automation of electronic design, which help its customers build AI-based products. “The complexity and cost of developing next-generation intelligent systems requires engineering solutions with deeper integration of electronics and physics, accelerated by artificial intelligence and computing capabilities,” Sassine Ghazi, CEO of Synopsys, said in a statement.