Nvidia Invests $2 Billion in Synopsys for AI Chip Partnership

Nvidia Corp. announced a $2 billion investment in Synopsys Inc. on Monday, purchasing shares in the chip design software company as part of a multiyear partnership to advance artificial intelligence applications in semiconductor development. The deal, which sent Synopsys shares up more than 3 percent in early trading, underscores Nvidia's deepening ties with key suppliers amid the rapid growth of AI technologies.

The investment involves Nvidia acquiring approximately 2.6 percent of Synopsys' outstanding shares at $414.79 each, a slight discount from the company's closing price of $418.01 on Friday. Synopsys, based in Sunnyvale, California, specializes in electronic design automation (EDA) software and services that help engineers create and verify complex chip layouts, including the billions of transistors essential for modern AI systems. Nvidia, the Santa Clara-based leader in AI hardware, will integrate its computing tools and developer libraries into Synopsys' platforms to accelerate simulations and workflows.

Under the agreement, the companies plan to collaborate on product development, joint marketing, and cloud-based solutions. This includes shifting Synopsys' EDA...