Nvidia invests US$2 billion in chip design software provider Synopsys

A sign to a Nvidia office building is shown in Santa Clara, Calif. (AP Photo/Jeff Chiu)

AI chip leader Nvidia has invested US$2 billion in semiconductor design software provider Synopsys, adding to its slew of new partnerships in the artificial intelligence ecosystem amid concerns of increasingly circular deals.

The world’s most valuable firm has invested billions of dollars this year in companies linked to the booming AI industry, ranging from deals allowing as much as a $100 billion investment in ChatGPT parent OpenAI to a $5 billion stake in Intel.

Shares of Synopsys rose seven per cent in premarket trading, while Nvidia shares fell nearly two per cent.

Nvidia, which is a Synopsys customer, bought the company’s common stock at $414.79 per share, the companies said on Monday.

(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shinjini Ganguli)