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Amazon and Synopsys Sign Multi-Year Agreement Valued at More Than $1 Billion

Amazon is Synopsys’ lead customer for application-optimized silicon IP under a multi-year agreement valued at more than $1 billion, with separate AWS and Bedrock plans for Synopsys.
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Amazon and Synopsys have announced a multi-year agreement valued at more than $1 billion. Amazon will be the lead customer for Synopsys’ expanded application-optimized silicon IP business, while the companies also plan broader work involving electronic design automation (EDA), simulation, analysis and agentic AI. Separately, Synopsys plans to use Amazon Web Services (AWS) compute, storage and Bedrock to develop its own products and AI agents.

What the Amazon–Synopsys agreement covers

Synopsys announced the agreement on September 30, 2026, describing it as a multi-year commercial arrangement worth more than $1 billion. The announcement says it expands Amazon’s use of Synopsys IP and makes Amazon the lead customer for Synopsys’ application-optimized silicon IP business. The agreement also includes EDA, simulation and analysis, agentic AI, and planned multiphysics work on Amazon’s Trainium and Graviton chips. Synopsys announcement

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These are related but distinct parts of the collaboration: Synopsys IP and engineering tools support Amazon’s silicon work, while AWS cloud services are intended to support Synopsys’ own product development. The announcement does not assign the agreement to a particular chip design or production schedule.

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What the more-than-$1-billion figure means

The figure is the announced value of the agreement, not a disclosed price per chip or a statement that Synopsys has already recognized more than $1 billion in revenue. The release does not specify payment timing, guaranteed production volumes, royalty rates or how the value is divided between the companies.

Synopsys says the agreement advances its silicon IP business toward a license-plus-royalty model intended to deliver value as production volumes grow. That describes the company’s planned commercial approach and rationale; the announcement does not provide detailed contract terms or establish what royalties will ultimately be paid.

Which Amazon chips are named

The announcement identifies three Amazon silicon families in the context of the companies’ broader work:

  • Nitro: Amazon silicon for cloud security, networking and storage.
  • Graviton: Amazon’s general-purpose computing processor family.
  • Trainium: Amazon chips for AI training and inference.

Synopsys specifically describes planned multiphysics work on Trainium and Graviton. It does not say which individual chip designs will use particular Synopsys IP, nor does it provide a launch or manufacturing timeline.

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How Synopsys plans to use AWS and Bedrock

Synopsys says it plans to adopt Amazon EC2, AWS cloud storage and Amazon Bedrock to accelerate development of its own IP and EDA tools, including building and deploying AI applications and agents. This is Synopsys using AWS services in its product-development work. The announcement does not say that Amazon will use Bedrock to design its chips.

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What is known—and what is still uncertain

The companies present the agreement as a strategic expansion of a relationship they say has lasted more than 15 years. Amazon executive Peter DeSantis said purpose-built chips such as Graviton and Trainium can deliver better performance at lower cost because they are designed for customers’ needs. That is Amazon’s stated rationale, not an independently measured result in the announcement.

The release describes expected benefits and future collaboration but reports no realized productivity gains, production volumes or independently measured performance results. Synopsys also cautions that expected benefits and outcomes are forward-looking and subject to risks and uncertainties. The agreement’s detailed terms, recognized revenue and specific deployment schedule have not been disclosed.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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