Cellular Automata (CA) is an emerging paradigm for the combined analysis and design of complex systems using local update rules. An implementation of the paradigm has recently been demonstrated successfully for the design of truss and beam structures. In the present paper, CA is applied to two-dimensional nonlinear truss topology optimization problems. The optimization problem is stated as a minimization of complementary work (minimum compliance design). First order Kuhn-Tucker conditions are derived for the general case of geometric and material nonlinear behavior. The derived optimality criterion is equivalent to fully stressed design and is used as a design update rule. The analysis update rules are derived using an Updated Lagrangian Formulation. The CA combined analysis and design algorithm is applied to demonstrative problems.