Nvidia and Cadence promise ‘engineering reinvention’ with agentic AI

The goal is to reinvent engineering for the age of AI and accelerated computing, Cadence and Nvidia said, in addition to unlocking greater productivity across semiconductors, physical AI systems and AI Factories.

Announced at CadenceLIVE Silicon Valley 2026, the expanded partnership will combine Cadence’s agentic AI capabilities and electronic design automation (EDA) with Nvidia CUDA-X, AI physics, and Omniverse libraries to deliver industrial digital twin solutions. Both are hoping to scale engineering productivity and accelerate innovation at what Cadence calls “true agent speed”.

The news comes as Nvidia is scaling up its CUDA efforts, after CEO Jensen Huang announced the company expects to make US$1 trillion from AI chips through 2027. As a result, the chip giant has been entering a series of deals, including an agreement with AWS to deliver one million AI processors by the end of 2027 – one of its largest cloud AI infrastructure supply agreements to date.

Speaking specifically about CUDA at Nvidia GTC last month, Huang said the industry had reached an “inflection point” in computing and that CUDA-accelerated computing and AI are reinventing the engineering process.

“When you accelerate data processing, when you accelerate computing, you get the benefit of speed, you get the benefit of scale. Most importantly, you also get the benefit of cost,” he said. “All of these come together as one.”

Speaking on the Cadence partnership, he said: “For the first time, we can innovate in the digital world – exploring, testing and optimising ideas at unprecedented speed and scale – by building everything as full-fidelity digital twins first.

“Together, Nvidia and Cadence are bringing this vision to life, transforming how engineers design, build and operate the world.”

Agentic AI and digital twins are reshaping the engineering landscape, particularly as interest in agents soars across the global business landscape.

Anirudh Devgan, president and chief executive officer at Cadence, added: “Our expanded collaboration with Nvidia accelerates the convergence of design and physical realisation, connecting the Cadence AgentStack, Physical AI Stack and AI factory digital twins with Nvidia’s breakthroughs in accelerated computing to deliver unprecedented speed, accuracy and trust in simulation and system development.”

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