Nvidia has invested $2 billion in chip-design software maker Synopsys as part of a broader multi-year partnership to create new AI-powered design tools for use across multiple industries. Announced on Monday, the deal comes as Nvidia continues a series of major investments—including in OpenAI and Anthropic—to strengthen its lead in the fast-growing artificial intelligence sector.

This collaboration aims to shift the design workloads of several advanced industries from traditional CPUs to Nvidia’s GPUs. Synopsys software is used to design everything from semiconductors to aircraft components, allowing engineers to run virtual simulations before producing costly prototypes. These simulations, which can take weeks, could be reduced to a few hours using Nvidia’s chips, the companies’ CEOs said.

Nvidia CEO Jensen Huang said such a dramatic speed increase “will unlock opportunities that have never been possible before.” Synopsys and Nvidia already buy products from each other, and Nvidia’s wave of investments has raised questions about whether it is financially incentivizing customers to use its chips. Synopsys CEO Sassine Ghazi clarified that the $2 billion will give the company flexibility as it adapts its tools for Nvidia hardware and that there is no requirement to spend the money on Nvidia GPUs. Both leaders emphasized that the agreement is non-exclusive, and Ghazi said Synopsys remains open to working with other chipmakers such as AMD and Intel. Following the announcement, Synopsys shares rose nearly 5%, and Nvidia gained 1.4%.

Nvidia, now the world’s most valuable company, has poured billions this year into AI-related firms, including deals enabling up to $100 billion in funding for OpenAI and a $5 billion stake in Intel. Nvidia bought Synopsys shares at $414.79 each, roughly 0.8% below Friday’s closing price. Synopsys also works with AMD, while Nvidia collaborates with rival design-automation company Cadence, whose shares remained mostly unchanged.