NVIDIA And Synopsys Forge $2 Billion Partnership To Reshape AI Chip Design Tools

by Aaron Leong — Monday, December 01, 2025, 10:03 AM EDT

Computing giant NVIDIA and electronic design automation (EDA) leader Synopsys have forged a multiyear partnership that includes a substantial $2 billion equity investment, in a move to infuse accelerated computing and artificial intelligence into the engineering and chip design process.

This major collaboration, announced today, aims to minimize escalating complexity and cost barriers currently facing developers across industries, ranging from semiconductors and aerospace to automotive and healthcare. By uniting NVIDIA’s CUDA accelerated computing platform and expansive AI ecosystem with Synopsys’ leading EDA tools and simulation software, the companies are promising a revolution in product development, one where speed and scale see exponential increases.

Jensen Huang, founder and CEO of NVIDIA, described the union as a catalyst for "simulation at unprecedented speed and scale, from atoms to transistors, from chips to complete systems," asserting that the partnership will help engineers "invent the extraordinary products that will shape our future."

nvidia synopsys chartb — *Click to enlarge*

Central to the partnership is the acceleration of Synopsys' entire suite of compute-intensive applications (including physical verification, molecular simulations, and electromagnetic analysis) via NVIDIA's CUDA-X libraries and AI physics technologies. This optimization is expected to slash design cycle times significantly, allowing complex, multi-variable simulations to run in hours rather than days.

A second initiative focuses on pioneering agentic AI engineering. This involves integrating Synopsys' proprietary AgentEngineer tech with NVIDIA’s advanced agentic AI stack, which includes its NIM microservices and NeMo Agent Toolkit.

nvidia synopsys charta — *Click to enlarge*

Perhaps the most compelling aspect is the companies' commitment to bridging the gap between the physical and digital worlds; leveraging NVIDIA’s Omniverse and Cosmos platforms, users can create virtual design, testing, and validation environments for complete systems. For an automotive engineer, for instance, this means testing a new self-driving chip inside a complete, physics-accurate digital twin of a vehicle, simulating many miles of road time under various conditions before a single physical prototype is built. For a semiconductor firm, it means simulating a factory floor, or even the molecular behavior of a new material, inside a virtual environment. Synopsys CEO Sassine Ghazi highlighted that no two companies are better positioned to deliver these "AI-powered, holistic system design solutions."

The partnership is cemented by NVIDIA's $2 billion investment in Synopsys common stock, purchased at $414.79 per share. While the investment provides Synopsys with a significant capital injection, its primary importance lies in aligning the long-term incentives of both firms. Furthermore, to ensure widespread adoption, the companies have agreed on joint go-to-market initiatives, utilizing Synopsys' global sales network to deliver these accelerated engineering solutions, both on-premise and through cloud access, to engineering teams worldwide.