Synopsys and Amazon Web Services Sign $1 Billion Chip Deal

Synopsys and Amazon Web Services signed a multi-year chip design licensing agreement valued at more than $1 billion. Under the terms of the deal, Amazon's cloud computing unit will license chip design intellectual property from Synopsys, specifically utilizing blueprints optimized for particular chip types.

Synopsys provides the software and blueprints required for complex computer chips and competes with Arm Holdings in the licensing market. While Amazon Web Services already designs its own Trainium AI chips and Graviton central processors, the companies did not specify which particular products will utilize the new Synopsys blueprints.

In exchange for the intellectual property, Synopsys will integrate Amazon Web Services computing and storage services into its operations. The chip design firm will also use Amazon Bedrock to develop and deploy AI applications.