Nvidia has invested $2 billion in chip design software maker Synopsys as part of an expanded multi-year tie-up to jointly develop new tools for designing products across industries using its artificial intelligence technology.

The deal, unveiled on Monday, would make Nvidia the seventh largest shareholder in Synopsys, according to LSEG data, adding to its slew of circular AI partnerships in recent months that have sparked worries of a bubble in the industry.

The world's most valuable firm has struck deals ranging from as much as a $100 billion investment in ChatGPT parent OpenAI to a $5 billion stake in Intel.

Its stock fell over 1% on Monday, while Synopsys rose 6%.

"Nvidia has substantial control of who wins in the AI-driven compute marketplace and it would like to benefit from that

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