Synopsys and Amazon announced a strategic agreement valued at more than $1 billion to accelerate Amazon’s development of custom silicon for AWS infrastructure and AI applications. The deal expands their 15-year relationship, with Amazon becoming the lead customer for Synopsys’ new application-optimized silicon IP business.
Amazon will broaden its use of Synopsys’ IP, AI-powered electronic design automation (EDA) software and simulation technologies to develop custom chips, including Graviton and Trainium processors. The partnership also shifts Synopsys toward a license-plus-royalty model, with royalties tied to production volumes.
Synopsys will use AWS services, including Amazon EC2 and the Bedrock AI platform, to speed its own product development. The companies will also work together to apply AI across chip design and validation for Amazon’s engineering teams.