Synopsys and Amazon have signed a multi-year IP agreement worth $1 billion to support the future development of Amazon's custom chips and AWS infrastructure. The electronic design automation (EDA) firm says the deal marks an expansion of its silicon IP business, with Amazon acting as lead customer.

Amazon has designed its own silicon since 2015, when it acquired chip design firm Annapurna Labs. The current portfolio consists of Trainium, used for AI training and inference, and Graviton, used for general cloud computing and agentic AI. Both product lines build on the Nitro System, Amazon's architecture for security and networking.

The scale of the business is substantial. In July 2026, Amazon reported that its custom chip operation had passed a $25 billion annual revenue run rate.

Under the agreement, Amazon gains access to Synopsys' application-optimized silicon IP along with the company's EDA, simulation and analysis, and agentic AI technologies.

The arrangement runs in both directions. Synopsys will adopt Amazon EC2 compute and cloud storage services to accelerate development of its own IP and EDA tools, and will use Amazon Bedrock to build and deploy AI applications and agents.

The two companies also plan joint work on multiphysics solutions running on Trainium and Graviton, plus collaboration on AI applications spanning silicon-to-system engineering workflows. Amazon additionally intends to develop and deploy custom agentic AI capabilities so its engineering teams can design, analyze, optimize and validate complex chips and systems more efficiently.

Peter DeSantis, SVP of foundational AI, custom silicon and quantum computing at Amazon, framed the deal in terms of design velocity. "Amazon has invested in custom silicon for more than a decade, and it has fundamentally changed what's possible for AWS and our customers," he said. "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."

Sassine Ghazi, president and CEO of Synopsys, positioned Amazon as the anchor customer for the company's next growth phase. "Special-purpose silicon is at the heart of AWS innovation," he said. "As we expand into application-optimized IP solutions, we're proud to have Amazon as our lead customer for this next phase of growth. More broadly, by combining Amazon's leadership in AI infrastructure and custom silicon with Synopsys' leadership in silicon IP, EDA, and Multiphysics solutions, we can dramatically increase the productivity of our teams and shape the future of AI-native engineering."

The agreement ties two mutually dependent supply relationships together. Amazon gets IP and tooling for chips that now generate tens of billions in annual revenue, while Synopsys moves its own EDA and IP development workloads onto AWS infrastructure and commits to Bedrock as a platform for its AI application roadmap. Neither company disclosed the duration of the multi-year term or the revenue split between IP licensing and cloud consumption.