The $2 billion investment in Synopsys, which makes software and components for designing semiconductor chips, deepens their existing partnership at a time when analysts scrutinize circular AI-industry deals and warn of a potential bubble.

NVIDIA and Synopsys recently announced an expanded multiyear partnership to accelerate engineering software using NVIDIA AI and computing, alongside a US$2 billion NVIDIA investment in Synopsys and a slate of joint AI initiatives for industries such as semiconductors,

Nvidia’s investment in a UALink board member follows a similar move with Intel, raising concerns about the GPU giant’s influence over alternatives to its proprietary NVLink interconnect.

The collaboration unites Nvidia’s accelerated computing and AI ecosystem with Synopsys’ semiconductor, simulation, and verification technologies.