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Amazon and Synopsys agree multiyear silicon IP deal worth more than $1 billion

Amazon and Synopsys have agreed a multiyear silicon intellectual-property deal valued at more than $1 billion, extending their collaboration on Amazon’s custom chips.
Official Synopsys and Amazon announcement artwork.

Amazon and Synopsys have agreed a multiyear silicon intellectual-property deal valued at more than $1 billion, extending their collaboration on Amazon’s custom chips.

Announced on 30 September, the agreement uses a licence-plus-royalty model. The headline value should therefore not be interpreted as a single upfront payment.

Amazon will be the lead customer for Synopsys’ expanded application-optimised IP business. The companies have worked together for more than 15 years, across a period in which Amazon has developed Nitro infrastructure chips, Graviton processors and Trainium AI silicon.

The agreement also extends Amazon’s use of Synopsys’ electronic design automation, simulation, analysis and agentic AI technologies. The companies plan to optimise Synopsys multiphysics software for Trainium and Graviton.

The relationship runs in both directions. Synopsys engineering teams will adopt Amazon EC2 and Amazon Bedrock as part of their own product-development work.

The announcement does not identify a new Amazon chip, a manufacturing process node or a production schedule associated with the agreement.

Sources

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