Nvidia’s $2B Synopsys bet tightens its grip on the chip-design stack

NVIDIA It is investing $2 billion in Synopsys, which makes software and components for designing semiconductor chips. The deal deepens their existing partnership at a time when analysts have begun to scrutinize the increasingly common circular AI-industry deals and warn of a potential bubble.

Nvidia said it bought it Synopsis Each share is priced at $414.79 as part of a multi-year partnership to integrate Nvidia’s AI hardware and computing capabilities into Synopsys’ electronic design automation (EDA) and simulation software. The deal will help Synopsys transition its platform from CPU-based computing to GPUs, with hopes that the shift will speed up chip-design workflows. a release,

The deal boosted Synopsys’ stock by signaling long-term growth — a boon after the company recently reported weakness in its IP segment due to US export restrictions and issues at a key customer.

For Nvidia, investment Strong At a time when chip-design competition is beginning to heat up, Synopsys’s widely used EDA tools are gaining influence. This also comes after major investors like softbank And peter thiel Has sold his Nvidia position.

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