Cadence Design Systems Inc. (NASDAQ: CDNS) announced an expanded partnership with NVIDIA Corp. to develop accelerated solutions combining artificial intelligence, physics-based simulation and digital twins for semiconductor design, physical AI systems and AI factories.

The collaboration integrates Cadence's electronic design automation tools with NVIDIA's CUDA-X, AI physics and Omniverse libraries. Cadence stated the partnership aims to deliver engineering workflows with up to 100 times speedup compared to current methods.

Cadence introduced AgentStack, a system designed to orchestrate semiconductor and system design processes using agentic AI. The company said early deployments at more than 10 customers demonstrated up to 10 times productivity improvements in design and verification tasks. NVIDIA is adopting the AgentStack flow in its semiconductor and system design processes.

The partnership extends to embedded AI for robotics, combining Cadence's Physical AI Stack with NVIDIA's robotics simulation libraries. The companies are integrating Cadence's multiphysics simulation tools with NVIDIA's Isaac simulation libraries and Cosmos models to address simulation-to-real-world deployment challenges for autonomous machines.

For AI data centers, the collaboration includes digital twin technology for AI factories using NVIDIA's Omniverse DSX Blueprint. In a joint 10-megawatt AI factory case study, the companies reported that reduced power GPU operation demonstrated up to 17% more tokens per watt and potential billions in additional annual revenue per gigawatt for large-scale deployments.

Current customers using Cadence solutions accelerated by NVIDIA include Ascendence, Argonne National Laboratory, Honda R&D, Samsung and SK Hynix, according to the company's statement.

"We are at an inflection point in computing—CUDA-accelerated computing and AI are reinventing the engineering process," said Jensen Huang, founder and CEO of NVIDIA.