Catenaa, Wednesday, September 30, 2026- Amazon Web Services announced a multi-year deal worth $1 billion with Synopsys to use silicon IP and AI-powered engineering software solutions.
In a statement, Synopsys said the deal is expected to accelerate the engineering of Amazon’s custom chips and AWS infrastructure using Synopsys’ silicon IP and AI-powered engineering software solutions.
The agreement names Amazon as the lead customer for Synopsys’ silicon IP business as it expands into what the company calls application-optimized IP, blueprints tailored for specific chip types rather than generic components.
The deal also marks a shift in Synopsys’ licensing model toward a license-plus-royalty structure, with royalty payments tied to production volumes, the company said.
The statement also said that Synopsys will accelerate product development using AWS services and partner to optimize Synopsys’ software on Trainium and Graviton
“Synopsys engineering will also adopt Amazon Elastic Compute Cloud (Amazon EC2) and Amazon Bedrock to accelerate its product development,” the statement said.
AWS designs a range of its own chips, including Graviton central processors, Trainium AI chips, and Nitro chips for cloud security, networking, and storage. The two companies did not specify which AWS chips will use Synopsys blueprints, Reuters reported.
The agreement also expands Amazon’s use of Synopsys’ electronic design automation software, simulation and analysis tools, and agentic AI technologies, the company said.
The two parties plan to collaborate on applying AI across chip-to-system engineering workflows, including developing custom agentic AI tools to help Amazon’s engineers design, analyze, and validate complex chips.
“Amazon has invested in custom silicon for more than a decade, and it has fundamentally changed what’s possible for AWS and our customers,” said Peter DeSantis, SVP, Foundational AI, Custom Silicon, and Quantum Computing at Amazon in a statement.
“From Graviton to Trainium, purpose-built chips deliver better performance at lower cost because they’re designed for exactly what customers need. As our chip designs grow more ambitious and AI reshapes the engineering process itself, Synopsys helps us move faster across the design cycle, helping us deliver more capable, efficient computing for customers worldwide,” he said.
Synopsys President and CEO Sassine Ghazi said in a statement that Amazon is the company’s “lead customer for this next phase of growth” and that combining the two companies’ capabilities “can dramatically increase the productivity of our teams.”
Amazon has already been expanding its custom silicon business, announcing a partnership with Qualcomm in September to develop custom chips for AI data center infrastructure.
Amazon CEO Andy Jassy has raised the prospect of selling chip racks to outside customers, putting the company’s annualized chip revenue at roughly $20 billion across its Trainium, Graviton, and Nitro product lines.
