In a major development, Nvidia, leading AI and chip innovator has invested $2 billion in chip design software company Synopsys.
This huge investment is part of a long-term partnership in which both companies will work together to create new design tools that use Nvidia’s AI technology for products in various industries.
“Our partnership with Synopsys harnesses the power of Nvidia accelerated computing and AI to reimagine engineering and design — empowering engineers to invent the extraordinary products that will shape our future,” Nvidia CEO Jensen Huang said in the release, as per CNBC.
Synopsys helps companies design chips and create AI-based products through its electronic design automation services.
Shortly after the announcement, Synopsys’ stock price increased by 7% before the stock market officially opened while Nvidia’s shares dropped by nearly 2% in premarket trading.
Synopsys CEO Sassine Ghazi also issued a statement, in which he said, “The complexity and cost of developing next-generation intelligent systems demands engineering solutions with a deeper integration of electronics and physics, accelerated by AI capabilities and compute.”
It is worth mentioning that the collaboration between the two companies isn’t exclusive and both the companies can work with other partners at the same time.
Besides this, Nvidia has so far spent huge sums in AI-related firm including a potential $100 billion in OpenAI and $5 billion in Intel.