Cadence Design introduced a virtual AI agent on Tuesday, aimed at assisting companies like NVIDIA in speeding up the intricate process of computer chip design.

The company sells core tools used to design complex chips containing hundreds of billions of transistors. Before these chips become physical silicon, engineers must use code-like languages to describe circuit layouts.

This new tool addresses a major bottleneck in the industry. Chip design is highly labor-intensive and costly, with engineering teams spending up to 70% of their time writing and testing code. Analysts suggest that AI-driven efficiency gains are crucial for the United States to maintain its technological edge.

On Tuesday, Cadence launched a tool called ChipStack AI Super Agent. This agent can analyze chip designs, build a "mental model" of how the chip is expected to operate, and then utilize various Cadence tools to test the design and fix flaws.

Paul Cunningham, Vice President of Research and Development and General Manager at Cadence, stated, "Between now and the end of the decade, we will undergo a transformation—from a company known for licensing new tools to one that offers virtual engineer leasing services."

Cadence claims the agent can accelerate certain tasks by up to tenfold. It is already in early use at companies such as NVIDIA, Altera, and chip startup Tenstorrent.