With a $2B stake in Synopsys, Nvidia deepens its control over chip-design tools

Nvidia is investing $2 billion in Synopsys, a company that develops software and components for semiconductor chip design. The move deepens an existing partnership at a moment when analysts are raising concerns about increasingly common circular deals in the AI sector and the risk of a bubble.

Nvidia said it purchased Synopsys shares at $414.79 each as part of a multi-year collaboration to bring Nvidia’s AI hardware and computing capabilities into Synopsys’ electronic design automation (EDA) and simulation tools. The partnership is intended to help Synopsys shift its platform from CPU-based to GPU-based computing, which the company says should accelerate chip-design workflows.

News of the deal boosted Synopsys’ stock, signaling confidence in its long-term growth after the firm recently reported weakness in its IP business tied to U.S. export controls and challenges involving a major customer.

For Nvidia, the investment expands its influence over Synopsys’ widely used EDA ecosystem as competition in chip design intensifies. It also follows notable Nvidia share sell-offs by major investors including SoftBank and Peter Thiel.