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.

Synopsys (SNPS), the target company in this case, is not a newbie. In fact, it was one of the upstarts back in the dot-com bubble era. Spoiler alert: It survived. The company is now midway through its fourth decade and produces revenue of more than $6 billion annually.

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.

Nvidia (NASDAQ:NVDA) shares rose about 2% Tuesday morning after a string of partnership moves and a $2 billion strategic stake in Synopsys (NASDAQ:SNPS). Shares were up 0.8% at $181.33 in premarket trading,