Amazon and Synopsys Sign Billion-Dollar AI Chip Design Deal

Amazon and Synopsys have announced a multi-year agreement valued at more than a billion dollars, covering collaboration on AI chip design. The deal will see Amazon license Synopsys intellectual property and expand its use of Synopsys electronic design automation (EDA) software tools for AI chip design and agentic AI technologies.

As part of the agreement, Synopsys will optimize its multiphysics solutions for Amazon's Trainium and Graviton chips. In return, Synopsys will adopt AWS cloud computing and storage services and use Amazon Bedrock to build and deploy AI applications and agents.

The partnership underscores the growing importance of specialized hardware for AI workloads. Amazon already markets its Graviton 5 for CPU-intensive agentic AI workloads, and it cites its Trainium chips for AI training and Nitro for cloud security, networking, and storage.

Many major AI developments in 2026 have centered on AI agents, leading to hardware shortages. This deal positions both companies to address the demand for AI infrastructure and tools.