Nvidia has invested $2 billion in Synopsys through a common stock purchase, as part of a multi-year deal between the two companies to boost AI chip engineering and design.

The agreement will focus on Nvidia’s CUDA-accelerated computing, agentic and physical AI, and Omniverse digital twins offerings, with Synopsys using the chip company’s CUDA-X libraries and AI physics technology to optimize its applications, including chip design, physical verification, and optical simulation.

In a statement, the partners said the deal will allow them to achieve simulation speed and scale “previously unattainable through traditional CPU computing,” opening new market opportunities across engineering.

The two companies will also collaborate on virtual design, testing, and validation through the use of digital twins in industries such as semiconductor, robotics, aerospace, and energy; work together to provide cloud access for GPU-accelerated engineering solutions; and develop joint go-to-market initiatives to drive further market adoption.

“CUDA GPU-accelerated computing is revolutionizing design — enabling simulation at unprecedented speed and scale, from atoms to transistors, from chips to complete systems, creating fully functional digital twins inside the computer,” said Jensen Huang, founder and CEO of Nvidia.

“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.”

Sassine Ghazi, president and CEO of Synopsys, added: “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. No two companies are better positioned to deliver AI-powered, holistic system design solutions than Synopsys and Nvidia.

“Together we will re-engineer engineering and empower innovators everywhere to more efficiently realize their innovations.”

The companies noted that the partnership is not exclusive, and that both Nvidia and Synopsys will continue to work with the wider semiconductor and electronic design automation (EDA) ecosystem.