Caroline Hyde

Yeah, are we going to be talking about circular financing?

Maybe.

Nvidia shares higher, Synoptys shares higher, but off their session highs.

Nvidia investing $2 billion, buying into Synopsys at $414.79 a share.

You can see we're now pretty far beyond that.

What will happen is Synopsys will take NVIDIA's GPUs and its software library CUDA X and basically integrate it into the number one tool for designing and validating chips.

But on a webcast just now, Jensen Wang, NVIDIA CEO, saying there is no requirement that Synopsys buy GPUs as part of the deal.

And actually any chip maker that already does business with Synopsys can do so freely.

There's no exclusivity here.

Still, that was the reaction, circular financing.

It is.

And let's dig into the rationale a little bit more deeply now.

Mandeep Singh is here with us, covers semiconductors, of course, at Bloomberg Intelligence.

Mandeep, what is in it to solidify a partnership that was already very strong?

Why take an equity stake, do you think?

I'd like to dig into that last part a little bit more, Mandeep.

I mean, listening to Jensen Wang and the Synopsys CEO on the call, basically they're explaining that engineering tools still largely run on CPU-based systems, right?

And EDA, electronic design automation, is kind of the next frontier ripe for improvement with AI.

Is that something you see as being real here?

And to be clear, Jensen Wong saying in a webcast that's ongoing, there is no requirement that Synopsys uses the funds from the investment to buy NVIDIA GPUs.