At CadenceLIVE Silicon Valley 2026, Cadence Design Systems announced an expanded partnership with NVIDIA aimed at reshaping modern engineering through the integration of agentic AI, physics-based simulation, and digital twin technologies.
The collaboration brings together Cadence’s strengths in electronic design automation (EDA) and system design analysis with NVIDIA’s accelerated computing ecosystem, including CUDA-X, AI physics models, and Omniverse libraries. The goal is to dramatically improve productivity and accelerate innovation across semiconductors, physical AI systems, and large-scale AI infrastructure.
Accelerating Engineering with AI and Simulation
At the core of this partnership is a shared vision: enabling engineers to design, simulate, and optimise systems in the digital world before deploying them physically. By combining Cadence’s AI-driven design platforms with NVIDIA’s high-performance computing stack, the companies aim to deliver up to 100x faster engineering workflows.
This includes enhancements to Cadence’s EDA and SDA tools using NVIDIA technologies, allowing engineers to run complex simulations and design iterations at unprecedented speed and scale.
AgentStack: A New Era of AI-Driven Chip Design
Cadence also introduced AgentStack™, an advanced AI orchestration platform that builds on its earlier ChipStack AI Super Agent. Designed to manage end-to-end semiconductor and system design workflows, AgentStack extends beyond RTL design into physical, analog, and system-level engineering.
Running on NVIDIA’s accelerated computing infrastructure and leveraging AI models such as Nemotron, AgentStack enables multi-agent workflows capable of reasoning across complex design hierarchies. This shift from traditional workflows to AI-driven processes could reduce development cycles from days to hours.
Notably, NVIDIA is among the early adopters of this new system, integrating AgentStack into its own chip and system design processes.
Bridging Simulation and Real-World AI Systems
Beyond chip design, the partnership expands into physical AI applications, including robotics and autonomous systems. By combining Cadence’s multiphysics simulation tools with NVIDIA’s Isaac simulation platforms, the collaboration aims to close the “simulation-to-reality” gap.
This integrated workflow enables developers to train, test, and validate AI systems in highly accurate virtual environments before real-world deployment. Systems can then be deployed on platforms like NVIDIA Jetson, with continuous feedback loops enabled through live digital twins.
AI Factory Digital Twins for Hyperscale Efficiency
Another key focus is the development of digital twins for AI factories—massive data centre environments used for AI training and inference. Using NVIDIA Omniverse and Cadence simulation tools, companies can model and optimise these facilities before physical deployment.
A major metric in this area is “tokens per watt,” which measures how efficiently AI systems process data relative to power consumption. Early simulations show that optimised configurations could deliver up to 32% improvements in efficiency, translating into significant cost savings and increased revenue potential for hyperscale deployments.
Driving the Future of Engineering
The expanded partnership reflects a broader industry shift toward AI-driven engineering, where digital twins, simulation, and automation play a central role in innovation.
By combining their respective technologies, Cadence Design Systems and NVIDIA are positioning themselves at the forefront of this transformation—enabling faster design cycles, improved accuracy, and more efficient system development across industries.
As these technologies continue to evolve, the collaboration is set to redefine how engineers design, build, and operate the next generation of intelligent systems.