Amazon, Synopsys sign multi-year IP deal worth over $1 billion for AI chip design
Amazon and Synopsys announced a multi-year agreement worth more than a billion dollars to deepen collaboration on AI chip design. Amazon will license Synopsys' IP and expand use of its electronic design automation software, while Synopsys will optimize its tools for Amazon's Trainium and Graviton chips and adopt AWS cloud and Bedrock services for its own development.
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The arrangement could give Amazon an edge in producing custom AI chips as design automation accelerates across the industry, particularly as major AI firms try to reduce reliance on costly Nvidia GPUs. It also suggests a mutually reinforcing business relationship, with Synopsys gaining AWS cloud customers while Amazon gains tighter integration for its silicon ambitions.
- Deal exceeds $1 billion and spans multiple years.
- Amazon gains expanded access to Synopsys IP and EDA tools for chip design.
- Synopsys will optimize its software for Amazon chips and adopt AWS/Bedrock services.
Source: tomshardware.com — Jon Martindale, 2026-10-02
Published there as: “Amazon and Synopsys ink multi-year billion-dollar deal in multi-year IP agreement to accelerate AI chip design efforts”
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