Synopsys (NASDAQ:SNPS) surged 10% on Monday following news that NVIDIA (NASDAQ:NVDA) is entering a long-term strategic partnership with the company and investing $2 billion in its common stock.

As part of the agreement, NVIDIA acquired Synopsys shares at $414.79 each. The collaboration is designed to combine NVIDIA’s AI and accelerated computing strengths with Synopsys’ engineering technologies.

The joint effort will target several key areas: boosting Synopsys software performance using NVIDIA’s CUDA-X libraries and AI-Physics tools, advancing agentic AI engineering, expanding digital twin capabilities via NVIDIA Omniverse, and developing cloud-based engineering solutions.

“CUDA GPU-accelerated computing is revolutionizing 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,” said Jensen Huang, founder and CEO of NVIDIA in the announcement.

The companies also plan to roll out coordinated go-to-market strategies to help broaden the adoption of GPU-accelerated engineering applications across multiple sectors. Their joint work aims to address mounting challenges in engineering workflows, including rising complexity, higher development costs, and pressure to shorten time-to-market.

Synopsys CEO Sassine Ghazi said the partnership would “re-engineer engineering and empower innovators everywhere to more efficiently realize their innovations.”

Both NVIDIA and Synopsys stressed that the agreement is non-exclusive, ensuring each firm can continue collaborating across the wider semiconductor and electronic design automation industries.

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