US News: In a major move to dominate the future of AI driven engineering, Nvidia has acquired a $2 billion stake in Synopsys, the leading provider of electronic design automation software, as part of an expanded multi year strategic partnership announced on December 1, 2025.
Nvidia purchased Synopsys common stock at $414.79 per share, marking one of its largest equity investments this year and underscoring its push to integrate accelerated computing and artificial intelligence deeper into the semiconductor and systems design ecosystem.
The collaboration builds on years of existing cooperation between the two companies and aims to transform how engineers design, simulate, and verify complex intelligent systems across industries including semiconductors, automotive, aerospace, robotics, and industrial manufacturing.
Central to the partnership is the acceleration of Synopsys extensive suite of compute heavy applications through Nvidia CUDA X libraries and advanced AI physics technologies. This includes speeding up critical workloads such as chip design verification, electromagnetic analysis, optical simulations, molecular modeling, and physical verification processes that traditionally rely on slower CPU based systems.
The companies are also advancing agentic AI capabilities by linking Synopsys AgentEngineer platform with Nvidia full agentic AI stack, incorporating NIM microservices, the NeMo Agent Toolkit, and Nemotron models. This integration promises to introduce autonomous features that can handle intricate design and simulation tasks with minimal human intervention.
Another key focus is the development of industrial scale digital twins. By combining Nvidia Omniverse platform with Synopsys Cosmos suite and other simulation tools, engineers will gain access to physically accurate virtual replicas for testing entire systems from individual chips to full vehicles or factories in a simulated environment.
To make these advanced tools more accessible, the partnership includes plans for cloud based GPU accelerated engineering solutions and coordinated sales efforts leveraging Synopsys worldwide network of direct sellers and channel partners.
Nvidia founder and CEO Jensen Huang highlighted the revolutionary potential of the deal, stating that CUDA GPU accelerated computing is revolutionizing design by enabling simulations at unprecedented speed and scale, from atoms to transistors and complete systems, fully functional digital twins inside the computer. He added that the deepened partnership with Synopsys brings together Nvidia accelerated computing and AI to fundamentally reimagine engineering and design, empowering innovators to create the extraordinary products of tomorrow.
Synopsys president and CEO Sassine Ghazi echoed the sentiment, noting that the rising complexity and cost of building next generation intelligent systems require tighter integration of electronics and physics, powered by AI and high performance computing. He described the alliance as a way to re engineer engineering itself and help customers bring innovations to market more efficiently.
Market reaction was swift, with Synopsys shares surging as much as 7 percent in early trading following the announcement, while Nvidia stock saw modest gains amid broader enthusiasm for its growing influence in AI infrastructure.
This investment fits into Nvidia broader strategy of strategic stakes and partnerships across the AI landscape, further solidifying its position as the essential enabler for the era of accelerated, AI infused engineering and chip development.
