New Delhi, India, December 1, 2025- NVIDIA invests $2 billion in Synopsys to strengthen AI design tools, marking a significant step in its strategy to expand AI-driven engineering solutions. The investment, announced on December 1, enhances a multi-year partnership aimed at transforming design workflows across multiple industries. NVIDIA acquired Synopsys common stock at $414.79 per share, signaling strong confidence in the collaboration’s long-term value. The companies intend to accelerate product development and drive innovation by leveraging AI-powered tools combined with advanced GPU technology.
The partnership addresses the time-consuming nature of traditional engineering simulations. Engineers often rely on CPUs, which can take weeks to complete complex processes. NVIDIA GPUs, however, can reduce simulation times to mere hours, enabling faster iterations and greater efficiency. By increasing speed and precision, both firms believe this collaboration will reshape how industries approach product development. This shift could significantly impact sectors such as automotive, aerospace, and electronics, where faster design cycles are increasingly critical.
NVIDIA CEO Jensen Huang highlighted the importance of this collaboration, stating that faster simulations will create opportunities previously out of reach. Synopsys CEO Sassine Ghazi echoed this sentiment, emphasizing that AI-driven tools will empower engineers to work at an unprecedented scale. Both leaders framed the partnership as more than a technology investment; it represents a shared vision for the future of engineering innovation. The move reflects the growing role of AI in transforming complex workflows into faster, smarter processes.
Several initiatives are central to the agreement. Synopsys will integrate its AgentEngineer platform with NVIDIA’s agentic AI stack, which includes NIM microservices and Nemotron models. This integration aims to optimize workflows for design automation, making processes more efficient. The companies will also develop GPU-accelerated engineering tools using NVIDIA’s CUDA-X libraries and AI-based physics technologies. These tools are designed to deliver faster and more accurate simulations, improving both design quality and speed.
Digital twin technology is another major focus. Synopsys plans to use NVIDIA Omniverse and Cosmos platforms to create virtual models for design validation. Engineers can test products in a simulated environment before manufacturing, lowering both costs and risks. Additionally, the collaboration will expand cloud-ready solutions, making GPU acceleration accessible through major cloud platforms. These efforts aim to make advanced design capabilities widely available for engineers and businesses.
Importantly, the partnership is non-exclusive. Synopsys can continue working with other chipmakers, including AMD and Intel. Ghazi confirmed that the $2 billion investment does not require Synopsys to purchase NVIDIA GPUs. Instead, the funding will support software development and innovation, maintaining flexibility for collaboration across the semiconductor industry. This approach ensures the partnership fosters growth without limiting opportunities with other technology providers.
NVIDIA’s investment strategy in AI has accelerated over the past year. Earlier in 2025, the company committed billions to partnerships with firms like OpenAI and Anthropic. Analysts note these investments reinforce NVIDIA’s ecosystem, positioning its GPUs as the preferred choice for AI workloads. Market response to the Synopsys news was positive: Synopsys shares rose nearly 5%, while NVIDIA gained approximately 1.4%. Investors view the move as a strong indicator of growth in AI-driven design solutions.
Both CEOs emphasized the collaboration’s broader vision. Huang noted that the speed improvements could unlock possibilities engineers have never imagined. Ghazi highlighted how AI-powered tools enable work at scale previously unattainable. Looking forward, 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 benchmarks for efficiency, creativity, and productivity.
Overall, the $2 billion investment underscores NVIDIA’s commitment to leading AI innovation in engineering. By supporting Synopsys, the company strengthens its ecosystem while providing tools that accelerate product development. For businesses seeking faster, smarter engineering solutions, this alliance may become a transformative force, enabling industries to design, test, and launch products more effectively than ever before.
