Nvidia Just Piled $2 Billion Into This Artificial Intelligence (AI) Chip Designer. Should Investors Follow Suit? Nvidia announced the latest in a string of AI-centric collabortions and investments. The company is pouring $2 billion into electronic design automation (EDA) specialist Synopsys.

Meta Platforms (NASDAQ:META) caused some ripples in the tech scene when it was reported that Mark Zuckerberg’s tech titan is in discussions with Alphabet (NASDAQ:GOOG) to invest billions of dollars in Google TPUs (Tensor Processing Units) for its data centers by 2027.

Nvidia announced a multi-year expansion of its strategic alliance with chip software maker Synopsys, as well as a $2 billion equity investment into the company.

The good news for Nvidia is that it has other segments generating billions of dollars in sales beyond AI-GPUs, which could help cushion the impact if an AI bubble forms and bursts. This makes an 80% or greater decline in its shares unlikely. Nevertheless, a 50% or greater plunge should be expected if history were to repeat itself.

Nvidia's US$2 billion investment in Synopsys marks a pivotal attempt to extend CUDA and GPU-accelerated computing from AI training into the core of industrial and semiconductor engineering, tightening its grip on the entire AI server ecosystem,