FILE PHOTO: Nvidia CEO Jensen Huang speaks during an event ahead of the COMPUTEX forum, in Taipei, Taiwan June 2, 2024.
Ann Wang | Reuters
Nvidia announced Monday that it had purchased $2 billion worth of Synopsis‘ common shares as part of a strategic partnership to accelerate computer engineering and artificial intelligence solutions.
As part of the multi-year partnership, Nvidia will help Synopsys accelerate its portfolio of compute-intensive applications, advance agentic AI engineering, expand cloud access and develop joint go-to-market initiatives, according to a release. Nvidia said it purchased Synopsys stock at $414.79 per share.
“Our partnership with Synopsys harnesses the power of Nvidia’s accelerated computing and AI to reinvent engineering and design, enabling engineers to invent the extraordinary products that will shape our future,” said Jensen Huang, CEO of Nvidia, in a statement.
Synopsys stock jumped about 7% in premarket trading. Nvidia shares were down about 1%.
Tune in at 9:30 a.m. ET as Nvidia CEO Jensen Huang and Synopsys CEO Sassine Ghazi join CNBC TV to discuss the partnership. Watch in real time on CNBC+ or the CNBC Pro stream.
Nvidia has been one of the biggest beneficiaries of the AI boom because it makes the graphics processing units, or GPUs, that are essential for creating and training AI models and running large workloads.
Synopsys offers a range of engineering solutions, including silicon design and electronic design automation, that help its customers create AI-driven products.
“The complexity and cost of developing next-generation intelligent systems demand engineering solutions with deeper integration of electronics and physics, accelerated by AI and compute capabilities,” Sassine Ghazi, CEO of Synopsys, said in a statement.
The partnership is not exclusive, meaning Nvidia and Synopsys can still work with other companies in the ecosystem.
The two companies will hold a press conference to discuss the announcement at 10 a.m. ET.
