Nvidia’s $2 billion Synopsys bet tightens its grip on the chip design portfolio

Nvidia The $2 billion investment is Synopsys, which makes software and components for designing semiconductor chips. The deal deepens their existing partnership at a time when analysts have begun scrutinizing the circular deals increasingly common in the AI ​​industry and warning of a potential bubble.

Nvidia said it bought summary Shares at $414.79 each 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 shift its platform from central processing unit (CPU)-based computing to graphics processing units, a shift it hopes will speed up its chip design workflow, according to release.

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

For Nvidia investment Strengthens Its impact on Synopsys’s widely used EDA tools comes at a time when competition in chip design is beginning to intensify. It also comes after major investors such as Softbank and Peter Thiel They sold their positions at Nvidia.