Nvidia (NVDA) has announced that it purchased $2 billion U.S. of microchip design and verification company Synopsys’ (SNPS) common stock.
The investment is part of a new strategic partnership aimed at accelerating computing and artificial intelligence (A.I.) engineering solutions, said Nvidia.
Under terms of the deal, Nvidia will help Synopsys accelerate its portfolio of compute-intensive applications, advance A.I. engineering, and develop joint initiatives.
Nvidia said it purchased Synopsys’ stock at $414.79 U.S. per share. News of the investment has SNPS stock up 7% in early trading on Dec. 1.
Nvidia has been one of the biggest beneficiaries of the A.I. boom because it makes the processors that power data centers and artificial intelligence workloads.
Synopsys offers a range of engineering solutions, including silicon design and electronic design automation that help customers such as Nvidia build A.I. microchips and related products.
The partnership is not exclusive, which means that Nvidia and Synopsys can still work with other companies as they see fit.
Prior to Dec. 1, Synopsys’ stock had declined 13% this year to trade at $418.01 U.S. per share.
NVDA stock has gained 28% this year to currently trade at $177 U.S. a share.
