Nvidia invests $2 billion in chip design software maker Synopsys to develop new tools for designing products using AI technology. The deal aims to shift industries towards using Nvidia’s graphics processing unit chips. Synopsys software is crucial for designing various products, with simulations potentially speeding up using Nvidia’s chips.

The CEOs of both companies highlighted the significant speed-up in simulations that Nvidia’s chips could provide, unlocking new opportunities. The non-exclusive deal between Synopsys and Nvidia allows for collaboration with other chipmakers. Synopsys CEO emphasized that the investment will not necessarily be used to purchase Nvidia GPUs.

Synopsys shares surged nearly 5%, while Nvidia rose 1.4%. Nvidia’s strategic investments in AI-related companies this year, including OpenAI and Intel, demonstrate its commitment to the rapidly growing industry. The purchase of Synopsys’s common stock at a slight discount reflects Nvidia’s strategic investment approach.

Read more at Yahoo Finance: Nvidia takes $2 billion stake in Synopsys as AI deal spree accelerates