Amazon and Synopsys ink multi-year billion-dollar deal in multi-year IP agreement to accelerate AI chip design efforts

Amazon and chip design tool maker Synopsys are entering a multi-year deal, said to be worth over a billion dollars, in which the two companies will deepen their cooperation on AI chip design, while better optimizing their tools for one another's services. As part of the deal, Amazon will license Synopsys' IP and expand its use of Synopsys' electronic design automation (EDA) software tools for AI chip design and agentic AI technologies.

The deal goes both ways. From its side of the equation, Synopsys will work with Amazon to optimize its multiphysics solutions for Amazon Trainium and Graviton chips, will adopt AWS cloud computing and storage services, and will begin using Amazon Bedrock to build and deploy AI applications and agents for its own development work.

Although there's clearly some element of cooperative back-scratching with this deal, Synopsys and its competitors are moving towards automating ever greater portions of the chip design process. …