Amazon.com Inc. (NASDAQ: AMZN) and Synopsys Inc. (Nasdaq: SNPS) have entered a multiyear strategic agreement to accelerate Amazon custom silicon innovation and the development of AI-powered products and cloud infrastructure. The deal expands Amazon's use of Synopsys silicon IP, electronic design automation (EDA), simulation and analysis, and agentic AI technologies, with Amazon becoming the lead customer for Synopsys application-optimized silicon IP.
The collaboration is significant for the semiconductor and cloud computing industries, as it aims to speed up the design and deployment of custom chips that power AI workloads. The companies will also work to accelerate multiphysics solutions on Amazon Trainium and Graviton chips, which are critical for AI training and inference. Additionally, they plan to collaborate on applying AI across silicon-to-system engineering workflows, including Synopsys AI-powered EDA, physics-based simulation and agentic AI solutions, and custom agentic AI capabilities for Amazon engineering teams.
Synopsys will adopt Amazon EC2, cloud storage services and Amazon Bedrock to accelerate development of its IP and EDA tools and scale its product offerings. This reciprocal arrangement underscores the deepening ties between two technology giants and could lead to faster innovation cycles in chip design, benefiting a wide range of industries that rely on advanced semiconductors.
For investors, the agreement signals Amazon's continued commitment to vertical integration in silicon, reducing reliance on third-party chip suppliers and enhancing its competitive edge in cloud services. Synopsys gains a major customer and a cloud partner to optimize its tools for AI-driven design. The move also highlights the growing importance of AI in engineering workflows, potentially setting new standards for productivity and efficiency.
Amazon.com Inc. is a global technology company focused on e-commerce, cloud computing, digital advertising, artificial intelligence and consumer electronics. Through Amazon Web Services, it operates the world's largest cloud infrastructure platform. For more information, visit amazon.com/about and follow @AmazonNews.
The full press release can be viewed at https://ibn.fm/gRIxZ. For market data on Amazon, visit Amazon.com (NASDAQ: AMZN) and for Synopsys, visit Synopsys Inc. (Nasdaq: SNPS).
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