Nvidia announces $2 billion investment in California-based Synopsys for advanced chip design solutions
Chipmaking giant Nvidia Corp. is investing $2 billion in shares of chip design software company Synopsys Inc. as part of a broader engineering and design partnership, marking the company’s latest significant investment in one of its suppliers.
Nvidia acquired it for $414.79 per share, the company said in a press release on Monday.
The chipmaker said this expanded partnership combines Nvidia’s artificial intelligence and accelerated computing power with Synopsys’ engineering solutions to help R&D teams design, simulate and verify smart products more accurately, quickly and cost-effectively.
The shares make up 2.6% of Synopsys’ total shares. This California-based company is among the largest providers of software and services for the design of electronic components, Bloomberg reported.
Synopsys shares rose 7.4% in premarket trading. The stock is down about 14% this year through Friday’s close. Shares of Nvidia were slightly lower in premarket trading.
What did Jensen Huang say about the latest investment?
Jensen talking about the latest partnership Huang“Our partnership with Synopsys leverages the power of Nvidia’s accelerated computing and artificial intelligence to reimagine engineering and design, empowering engineers to invent extraordinary products that will shape our future,” said Nvidia founder and CEO.
Meanwhile, Sassine Ghazi, CEO of Synopsys, said: “The complexity and cost of developing next-generation intelligent systems require engineering solutions with deeper integration of electronics and physics, accelerated by AI capabilities and computing. No two companies are better positioned than Synopsys and NVIDIA to deliver AI-enabled, holistic system design solutions. Together we will reimagine engineering and empower innovators to innovate more efficiently.”
Nvidia’s investments
Nvidia, the world’s most valuable company, is amid the rise of artificial intelligence, including OpenAI and CoreWeave Inc. It has invested in many companies, including data center operators such as. It also agreed to invest $5 billion in a possible rival, Intel Corp., to jointly develop chips for personal computers and data centers.
What is Synopsys’ expertise?
Synopsys’ software helps design the complex layout of billions of transistors and connectors for modern chips and also verifies that the hardware will work as intended before production begins. This process is necessary to create the central chips of artificial intelligence systems such as those sold by Nvidia.
According to Bloomberg Intelligence analyst Niraj Patel, Synopsys’ technology is similar to that of Alphabet Inc. and Tesla Inc. It is used by a wide variety of semiconductor and systems companies such as. This development will enable the company to incorporate more advanced chips into its design and simulation tools in sectors such as automotive, aerospace, industrial and energy.
