Nvidia takes USD2b stake in chip software maker Synopsys
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The news: Nvidia said on Monday that it has purchased USD2 billion ($3.05 billion) of Synopsys’ common stock as part of a strategic engineering and design partnership.
The numbers: Nvidia bought the shares at USD414.79 apiece, the companies said, compared with a closing price of USD418.01 on Friday.
Shares in Synopsys surged about 8% in pre-market trading on Monday (00:55am Tuesday AEDT), while Nvidia was trading down around 1%.
The context: The deal will see Synopsys accelerate its portfolio of compute-intensive applications, progress agentic AI engineering, expanding cloud access and develop joint go-to-market initiatives.
Nvidia has invested in several companies during the AI boom including OpenAI, CoreWeave and Intel, which has fed concerns about circular deals that inflate the valuations of certain companies.
Synopsys is one of the largest providers of software and services used to design electronic components, helping its customers build AI-powered products.
The sources: Nvidia press release, Bloomberg, CNBC
