"Now it is the turn of chip design software developer Synopsys, which will receive $2 billion in a multi-year partnership. The goal is to use AI to design new AI chips faster via EDA (Electronic Design Automation). Nvidia announced today that it has purchased Synopsys shares for $414.79 each, a discount of 0.8 percent on Friday's closing price. Synopsys develops software that chip manufacturers use to create and test their designs, a field known as EDA."
"The deal did not come about out of the blue. Nvidia is itself a customer of Synopsys and uses its software to design its own chips. At the same time, Synopsys is now becoming a partner and an investment. This pattern of 'circular deals' raises questions, especially since Nvidia has also invested in companies such as OpenAI, xAI, and CoreWeave, which then spend billions on Nvidia hardware. Bloomberg caused quite a stir when it exposed this web of mutual spending."
Nvidia is committing $2 billion in a multi-year partnership with Synopsys to use AI and EDA tools to speed the design of new AI chips. Synopsys provides software used by chip manufacturers to create and test increasingly complex designs, and AI may enable more autonomous generation of novel chip architectures. The market reacted with Synopsys shares rising and Nvidia shares falling slightly. Nvidia has made numerous AI-related investments previously, creating circular commercial relationships that have drawn scrutiny. In August 2024 the US Department of Justice opened antitrust investigations into Nvidia's potential abuse of power.
Read at Techzine Global
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