Nvidia has made a significant move to solidify its position in the burgeoning AI landscape with a $2 billion investment in Synopsys, a leader in electronic design automation (EDA) software. The deal, announced on Monday, December 1, 2025, aims to accelerate design and engineering across a multitude of industries by integrating Nvidia's AI and accelerated computing prowess with Synopsys' market-leading engineering solutions.
As part of this multiyear partnership, Synopsys will leverage Nvidia technology to enhance its compute-intensive applications, and the two companies will collaborate to advance "agentic artificial-intelligence engineering". This collaboration seeks to empower research and development teams to design and simulate products more rapidly and at a reduced cost. Nvidia purchased Synopsys stock at $414.79 a share. Following the announcement, Synopsys shares experienced a surge of 7.8%, reaching $450.73 in premarket trading.
Jensen Huang, the founder and CEO of Nvidia, emphasized that the partnership aims to "reimagine engineering and design," enabling engineers to create groundbreaking products. Sassine Ghazi, the president and CEO of Synopsys, echoed this sentiment, stating that the partnership will facilitate the development of AI-powered, holistic system design solutions.
The collaboration will focus on several key areas, including:
- CUDA GPU-accelerated computing: Utilizing Nvidia's CUDA platform to revolutionize design by enabling simulation at unprecedented speeds and scales.
- Agentic and physical AI: Integrating AI capabilities into electronic design automation and simulation processes to support autonomous design features.
- Omniverse digital twins: Developing digital twins for various industries, including semiconductors, robotics, aerospace, and automotive, using Nvidia's Omniverse platform and Synopsys' Cosmos technology.
The partnership is not exclusive, as both Nvidia and Synopsys plan to continue collaborating with the broader semiconductor and EDA ecosystem. They also intend to enable cloud-based access to GPU-accelerated engineering tools and develop joint go-to-market initiatives.
This investment is not the first instance of Nvidia strategically investing in other companies. In September 2025, Nvidia and OpenAI announced a partnership involving a potential $100 billion investment from Nvidia into OpenAI, contingent on OpenAI's deployment of 10 gigawatts of Nvidia hardware. Additionally, Nvidia and Microsoft have a similar arrangement with Anthropic, an OpenAI competitor.
Nvidia's $2 billion investment in Synopsys is viewed by Wall Street as one of the largest AI deals of the year, signaling the anticipated acceleration of global spending in the AI sector. This move underscores Nvidia's commitment to expanding the reach of its GPUs beyond machine learning and into areas such as semiconductor manufacturing, physics simulations, and electronic design automation. The partnership is expected to significantly speed up Synopsys' software, potentially yielding up to a 30x speedup for circuit simulations and a 20x speedup for computational lithography.
This strategic alliance between Nvidia and Synopsys is poised to revolutionize engineering and design, empowering industries to develop innovative products with greater speed, precision, and efficiency.
