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Nvidia Invests $3 Billion in Synopsys

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Chipmaker aims to integrate AI technology into Synopsys' design applications

Nvidia has made a $US2 billion ($3 billion) investment in Synopsys, a chip-design software maker, forging a partnership focused on integrating Nvidia’s AI-computing technology into a wider range of industries. Nvidia purchased the shares at $US414.79 each, according to a joint statement released on Monday. The acquisition represents a 2.6 per cent stake in Synopsys’ outstanding stock.

Synopsys, headquartered in California, provides software and services essential for designing electronic components. The company’s tools facilitate the intricate layout of billions of transistors and connectors found in modern chips. Additionally, Synopsys verifies the hardware’s functionality prior to production. This process is crucial for developing chips used in artificial intelligence systems, including those manufactured by Nvidia.

The collaboration will focus on integrating Nvidia’s technologies into Synopsys’ chip-design applications. Furthermore, the companies plan to implement AI agents and collaborate on joint marketing initiatives. News of the investment and partnership spurred market activity, with Synopsys shares experiencing a surge of up to 6.9 per cent in New York trading. Nvidia’s stock also saw a rise, climbing by 1.4 per cent.

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