Synopsys Inc (NASDAQ:SNPS, XETRA:SYP) shares added more than 3% on Monday to trade at about $433 after Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) announced a significant investment and expanded collaboration with the engineering software company.
Nvidia is acquiring approximately $2 billion of Synopsys common stock through a private placement at $414.79 per share, making Nvidia one of Synopsys’ largest shareholders.
The deal also formalizes a multiyear partnership between the two companies, building on existing collaborations in AI, accelerated computing, and simulation technologies.
The partnership aims to integrate Nvidia’s CUDA accelerated computing, agentic and physical AI, and Omniverse digital twin technologies with Synopsys’ engineering solutions. By doing so, the companies plan to enhance simulation speed and scale for R&D teams across industries, including semiconductors, aerospace, automotive, and industrial sectors.
“CUDA GPU-accelerated computing is revolutionizing design — enabling simulation at unprecedented speed and scale, from atoms to transistors, from chips to complete systems,” Nvidia CEO Jensen Huang said.
He added that the partnership with Synopsys would “harness the power of accelerated computing and AI to reimagine engineering and design, empowering engineers to invent the extraordinary products that will shape our future.”
Synopsys CEO Sassine Ghazi said the collaboration addresses growing complexity in product development.
“The cost and difficulty of developing next-generation intelligent systems demands engineering solutions that integrate electronics and physics, accelerated by AI capabilities and compute,” Ghazi said. “Together with Nvidia, we will re-engineer engineering and help innovators bring their ideas to life more efficiently.”