Nvidia On Monday, it announced it had purchased $2 billion in stock. synopsisThe common stock was acquired as part of a strategic partnership to accelerate computing and artificial intelligence engineering solutions.
As part of the multi-year partnership, Nvidia will help Synopsys accelerate its portfolio of compute-intensive applications, advance agent AI engineering, expand cloud access and develop joint go-to-market initiatives, according to the release. Nvidia announced that it purchased Synopsys stock for $414.79 per share.
“This is a big deal,” Nvidia CEO Jensen Huang said Monday on CNBC’s “Squawk on the Street.” “The partnership we are announcing today aims to revolutionize design and engineering in one of the world’s most compute-intensive industries.”
Synopsys stock rose 4%. Nvidia stock rose 1%.
Nvidia is one of the biggest beneficiaries of the AI boom because it makes graphics processing units (GPUs), which are key to building and training AI models and running large-scale workloads.
Synopsys provides services such as silicon design and electronic design automation to help customers build AI-powered products.
CEO Sassine Ghazi told CNBC that the partnership with Nvidia will reduce workloads that previously took weeks to hours.
“We are experiencing a platform transition from classic general-purpose computing running on CPUs to a new way of computing called accelerated computing running on GPUs,” said Huang. “Of course, that old way of doing things is still going to exist, but the world is moving to this new way of computing.”
Nvidia and Synopsys have a long-standing relationship, so Monday’s announcement builds on their existing partnership.
Huang said Nvidia is “built on Synopsys’ design tools.”
This partnership is not exclusive, meaning Nvidia and Synopsys will continue to be able to collaborate with other companies in the ecosystem.
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