AI ( Artificial Intelligence ) Nvidia, the chip leader Invests $2 billion in Synopsys (Synopsys).
On December 1st local time, Nvidia announced an agreement with Synopsys , an American electronic design automation (EDA) company, to invest $2 billion (approximately RMB 14.15 billion) in Synopsys at a price of $414.79 per share, representing a significant portion of Synopsys ' equity investment. The two companies will also engage in deeper engineering and design cooperation, representing 2.6% of the company's issued shares.
According to reports, NVIDIA 's tools will be integrated into Synopsys ' chip design applications, and the two companies will also deploy AI agents and conduct joint marketing. NVIDIA CEO Jensen Huang described this collaboration as "a technological upgrade" that will accelerate the adoption of AI and accelerated computing in the automated design industry.
In an interview with foreign media, Jensen Huang stated that the collaboration between the two companies is not exclusive and is not linked to any agreement to purchase Nvidia chips. Huang pointed out that many older computers based on general-purpose chips are still being used in the automated design industry. A closer partnership with Synopsys will accelerate the adoption of AI and accelerated computing technologies.
Jensen Huang emphasized that this collaboration "is a big deal": "The collaboration we are announcing today aims to transform one of the world's most computationally demanding industries: design and engineering." Synopsys Chief Operating Officer Sassine Ghazi also stated that the collaboration with NVIDIA will help the company reduce workloads that previously took weeks to complete to just a few hours.
When asked why investors should focus more on enterprise-level AI applications than on consumer-end AI competition, Jensen Huang explained that the world's largest industrial sector actually consists of industrial and business-to-business (B2B) businesses, and these trillion-dollar industries are undergoing profound changes driven by next-generation computing platforms: "Almost all industrial companies and companies that manufacture products, such as Nvidia and General Motors..." and Boeing Their spending on engineering software tools can be hundreds of millions or even billions of dollars. However, their spending on prototyping these products can easily reach 10 to 20 times that figure.
Regarding the shift in computing platforms, Jensen Huang believes the shift has already occurred: "In 2016, 90% of the world's scientific supercomputers were CPUs and 10% were GPUs. This year, 90% are GPUs and 10% are CPUs. Now, we need to bring about this shift for the engineering design industry." He also pointed out that through digital twins... The technology enables prototyping in a virtual environment, which has led to a 10-fold to 100-fold increase in market opportunities.
Publicly available information shows that Synopsys is an EDA company headquartered in Sunnyvale, 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. Currently, its technology products are used in smart cars and the Internet of Things (IoT). Artificial intelligence , cloud computing And emerging technology innovation fields such as information security.
Bloomberg New Energy Analyst Niraj Patel stated that Synopsys' technology has been adopted by Google's parent company Alphabet and Tesla. Many semiconductors Through its collaboration with NVIDIA, Synopsys will be able to adopt more advanced chips in design and simulation tools for the automotive, aerospace, industrial, and energy sectors.
On the other hand, through this collaboration, NVIDIA is also increasing its investment in the EDA field. EDA, as we understand it, refers to a design approach that utilizes computer-aided design software to complete the functional design, synthesis, verification, and physical design (including placement, routing, layout, and design rule checking) of chips. It encompasses all technologies throughout the entire process of electronic design, simulation, verification, and manufacturing, and is hailed as the "mother of chips."
Over the past two years, NVIDIA has continued to invest in key partners in the AI industry chain, covering modeling companies, data centers, and more. Even potential competitors, including AI giant OpenAI and cloud computing service provider CoreWeave. In 2024, Nvidia pledged to invest $5 billion to acquire Intel. Common stock.
However, Nvidia's investments have also raised concerns in the market about AI "circular trading," which involves inflating the valuations of related companies through such transactions and channeling funds to customers, who in turn purchase Nvidia's chips.
On the 1st, according to Dazhihui VIP. Synopsys (Nasdaq: SNPS) shares rose 4.85% to close at $438.29 per share, with a total market capitalization of $81.41 billion; Nvidia (Nasdaq: NVDA) shares rose 1.65% to close at $179.92 per share, with a total market capitalization of $4.37 trillion.
(Source: The Paper)
