Nvidia's stock price rose in pre-market trading on Monday (December 1). The official website announced the partnership with Synopsys Synopsys expanded its strategic partnerships and invested $2 billion to purchase common stock in Synopsys .
Following the news, Synopsys (ticker symbol: SNPS) shares rose more than 11% to $464 per share in pre-market trading. By the close of trading, Synopsys ... The stock rose approximately 4.85% in early trading, reaching $438.29.
In its statement, Nvidia wrote that this expanded partnership will integrate Nvidia's expertise in artificial intelligence. Synopsys ' strengths in accelerated computing, along with its leading engineering solutions, help R&D teams design, simulate, and validate smart products with greater accuracy, faster speed, and lower cost.
Synopsys is an Electronic Design Automation (EDA) company headquartered in California, USA. It focuses on silicon design and verification and is the world's number one provider of chip automation design solutions and the world's number one supplier of chip interface IP. Its technologies and products are currently used in smart cars and the Internet of Things (IoT). Artificial intelligence , cloud computing And emerging technology innovation fields such as information security.
Synopsys' software helps design the complex layout of billions of transistors and connectors in modern chips and verify that the hardware functions as expected before production. This process is crucial for manufacturing the core chips of artificial intelligence systems, such as those used by Nvidia.
According to NVIDIA, Synopsys will further accelerate and optimize its broad portfolio of compute-intensive applications, covering areas such as chip design, physical verification, molecular simulation, electromagnetic analysis, and optical simulation, by leveraging NVIDIA's CUDA-X library and AI physics technology.
The two companies will collaborate to leverage digital twins. Technology for semiconductors , robot It creates next-generation virtual design, testing, and verification solutions for industries such as aerospace, automotive, energy, industrial, and healthcare.
Synopsys' technology will be integrated with NVIDIA's AI technology stack to enable autonomous design capabilities for EDA, simulation, and analysis workflows; the two companies plan to enable cloud access, allowing engineering teams of all sizes to benefit from the power of accelerated engineering solutions.
Nvidia will also develop a joint marketing plan with Synopsys, covering engineering teams across multiple industries. In addition, Nvidia announced a $2 billion investment to purchase Synopsys common stock at $414.79 per share.
As the world's most valuable company, Nvidia has invested in numerous companies amidst the AI boom, including OpenAI and CoreWeave. Nvidia has even agreed to invest in potential competitor Intel. Invest $5 billion in joint development of personal computers and data centers As part of a chip collaboration.
In a media interview on Monday, Jensen Huang elaborated on the strategic significance of the deal for Nvidia. He described it as a "revolutionary" industry transformation, rather than a simple business partnership.
Jensen Huang stated, “This is a huge deal. The partnership we are announcing today is about revolutionizing one of the world’s most computationally intensive industries—design and engineering. Synopsys is transforming the company, bringing the software and all the tools that the industry has used for about 35 years to GPU acceleration on NVIDIA.”
Jensen Huang specifically emphasized the market size of the industrial sector. When asked why investors should focus on enterprise applications rather than consumer AI competition, he replied, "If you look at the world's trillion-dollar industries, it's mainly industrial and business-to-business. These are the enterprise and serious industrial applications that are now being transformed by platform shifts."
He used specific data to illustrate the potential market space:
"Almost all industrial companies, companies that manufacture products such as Nvidia, General Motors" Boeing Their spending on engineering software tools might be hundreds of millions of dollars, or perhaps a very low billions. However, their spending on prototyping all those products is easily 10 to 20 times that.
Huang Renxun pointed out that by completing prototype design in a virtual environment through digital twin technology, "market opportunities have increased 10 to 100 times."
Regarding the platform shift, Jensen Huang provided a key data point: "In 2016, 90% of the world's scientific supercomputers were CPUs and 10% were GPUs. This year, 90% are GPUs and 10% are CPUs. The platform shift has already occurred. Now, we are driving this shift for the engineering design industry."
Synopsys CEO Sassine Ghazi added, "You take a workload that might normally run for two or three weeks and reduce it to a few hours. That's the value we deliver to our customers through this partnership, accelerating software on NVIDIA GPUs."
(Source: Daily Economic News)
