NVIDIA (NASDAQ:NVDA) and Synopsys, Inc. (NASDAQ:SNPS) are stepping up their partnership, a move that could shape how future technologies are designed. The companies are aligning more closely on advanced computing and engineering tools, hinting at broader changes for industries built on complex development cycles.
NVIDIA and Synopsys announced Monday that they are broadening their long-standing partnership to push the boundaries of modern engineering and product development.
The companies stated that the enhanced collaboration will fuse NVIDIA's advanced GPU computing with Synopsys' next-generation simulation and digital-twin technologies, aiming to ease development bottlenecks and accelerate innovation across industries grappling with increasingly complex design demands.
NVIDIA has invested roughly $2 billion in Synopsys common stock at a purchase price of $414.79 per share to further expand the partnership. The investment builds on the companies' earlier collaborations and establishes a multi-year plan to broaden access to GPU-accelerated engineering tools for design teams across multiple industries.
Partnership Targets Engineering Constraints
Companies in semiconductors, aerospace, automotive, and other sectors face growing design complexity, higher costs, and pressure to shorten development cycles. NVIDIA's accelerated computing platform will be integrated with Synopsys' design and verification tools to increase simulation speed and support more advanced testing.
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Integrated AI Tools
Synopsys plans to apply NVIDIA's CUDA-X libraries and AI-physics models across a wide set of compute-heavy workloads, including chip design, optical simulation, molecular modeling, and electromagnetic analysis. The firms will also link Synopsys' AgentEngineer system with NVIDIA's Agentic AI platform — including NIM microservices and the NeMo Agent Toolkit — to enable automated workflows in electronic design and system simulation.
Advancing Digital Twins
The companies will expand their work on digital twin technology using NVIDIA's Omniverse and Cosmos platforms, enabling more accurate virtual replicas across industries such as robotics, semiconductor manufacturing, and energy. Digital-twin adoption is also growing in healthcare. In one recent example, L&T Technology Services partnered with NVIDIA to develop AI-driven 3D digital lung models designed to support cancer diagnostics. These digital-twin breakthroughs highlight expanding potential.
The partners plan to make GPU-accelerated engineering tools available through cloud platforms and will pursue a joint go-to-market strategy using Synopsys' global sales network. Despite the close alignment, the companies stated that the partnership remains non-exclusive and open to broader industry collaboration.
Price Action: NVDA shares are trading 0.17% higher at $177.29, and SNPS is 2.87% higher at $430 at the last check on Monday.
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