Nvidia has agreed a multi‑year expansion of its strategic alliance with Synopsys, backing the deal with a $2bn investment in the electronic design automation specialist.

Under the arrangement, Nvidia has purchased Synopsys common shares worth $2bn at a price of $414.79 per share.

The deal targets the use of AI and accelerated computing to power engineering R&D tools across semiconductor, aerospace, automotive and industrial sectors.

The partners intend to focus on CUDA accelerated computing, “agentic and physical AI”, and the use of Nvidia’s Omniverse platform for digital twins in order to provide large‑scale simulation capabilities that go beyond conventional CPU‑based systems.

As part of the agreement, Nvidia and Synopsys will jointly work on speeding up Synopsys software by using Nvidia’s CUDA‑X libraries and AI‑Physics technologies.

The effort will target workloads such as chip design and verification, molecular simulations and electromagnetic analysis.

The companies also plan to connect Synopsys’ AgentEngineer technology with Nvidia’s agentic AI stack, incorporating NIM microservices and the NeMo Agent Toolkit.

This integration is intended to support autonomous design features within electronic design automation and simulation processes.

In digital twins, Nvidia and Synopsys will work together using Omniverse and Synopsys’ Cosmos technologies for sectors including semiconductors, robotics, aerospace and automotive.

The roadmap for the alliance also includes enabling cloud‑based access to GPU‑accelerated engineering tools, as well as coordinated go‑to‑market initiatives that will make use of Synopsys’ global direct sales force and network of channel partners.

Commenting on the deal, Jensen Huang, founder and CEO of Nvidia, said: “CUDA GPU-accelerated computing is revolutionising design – enabling simulation at unprecedented speed and scale, from atoms to transistors, from chips to complete systems, creating fully functional digital twins inside the computer.

“Our partnership with Synopsys harnesses the power of Nvidia accelerated computing and AI to reimagine engineering and design.”

Sassine Ghazi, president and CEO of Synopsys, added: “The complexity and cost of developing next-generation intelligent systems demands engineering solutions with a deeper integration of electronics and physics, accelerated by AI capabilities and compute.”