New Delhi, India, December 1, 2025- NVIDIA has invested $2 billion in Synopsys, marking a major step in its strategy to expand AI-driven design solutions. The investment, announced on December 1, strengthens a multi-year partnership aimed at transforming engineering workflows across industries. NVIDIA purchased Synopsys common stock at $414.79 per share, signaling confidence in the collaboration’s long-term potential.
The partnership focuses on speeding up complex design processes using NVIDIA’s advanced GPU technology. Traditionally, engineers rely on CPUs for simulations, which often take weeks to complete. By leveraging NVIDIA GPUs, these simulations could finish in hours, unlocking faster innovation. Both companies believe this shift will redefine how industries approach product development.
NVIDIA CEO Jensen Huang emphasized the impact of this collaboration during the announcement. He said the speed improvements will create opportunities that were previously impossible. Synopsys CEO Sassine Ghazi echoed this sentiment, highlighting how AI-powered tools will empower engineers to work at unprecedented scale.
The deal includes several key initiatives. First, Synopsys will integrate its AgentEngineer platform with NVIDIA’s agentic AI stack, which features NIM microservices and Nemotron models. This integration will enable smarter workflows for design automation. Second, the companies will develop GPU-accelerated engineering tools using NVIDIA’s CUDA-X libraries and AI physics technologies. These tools aim to make simulations faster and more accurate.
Another major focus is digital twin technology. Synopsys plans to use NVIDIA Omniverse and Cosmos platforms to create virtual models for design validation. This approach will allow engineers to test products in a simulated environment before manufacturing, reducing costs and risks. Additionally, the partnership will deliver cloud-ready solutions, making GPU acceleration accessible through major cloud platforms.
Importantly, the agreement is non-exclusive. Synopsys remains free to collaborate with other chipmakers, including AMD and Intel. Ghazi confirmed that the $2 billion investment does not obligate Synopsys to purchase NVIDIA GPUs. Instead, the funds will support software development and innovation. This flexibility ensures Synopsys can maintain relationships across the semiconductor industry.
The announcement comes as NVIDIA continues its aggressive investment strategy in the AI sector. Earlier this year, the company committed billions to partnerships with firms like OpenAI and Anthropic. These moves aim to secure NVIDIA’s leadership in AI hardware and software. Analysts note that such investments strengthen NVIDIA’s ecosystem, making its GPUs the preferred choice for AI workloads.
Market reaction to the news was positive. Synopsys shares rose nearly 5% following the announcement, while NVIDIA gained about 1.4%. Investors view the partnership as a strong signal of growth in AI-driven design tools. With industries like automotive, aerospace, and electronics adopting AI at scale, demand for faster and smarter engineering solutions is expected to surge.
Both CEOs stressed that, beyond technology, this collaboration represents a broader vision for the future of design. In this vision, AI and GPUs not only enhance efficiency but also enable breakthroughs across multiple sectors. Furthermore, as Huang stated, the magnitude of speed improvements will ultimately unlock possibilities that engineers have never before imagined.
Looking ahead, the partnership positions NVIDIA and Synopsys at the forefront of AI innovation. By combining cutting-edge hardware with advanced design software, they aim to set new standards for efficiency and creativity. For businesses seeking to accelerate product development, this alliance could be a game-changer.
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