Synopsys, Amazon Web Services sign chip design licensing deal worth more than $1 billion

SAN FRANCISCO, Sept 30 - Synopsys and Amazon Web Services have announced a multi-year, multi-billion dollar deal for Synopsys to license its chip design intellectual property to Amazon.com's cloud computing unit. Synopsys, a company that provides software for designing complex computer chips, generates a significant portion of its revenue from licensing blueprints for parts of a chip.

This new deal is expected to be worth more than $1 billion. AWS designs a variety of its own chips, including Graviton central processors and Trainium AI chips. The terms of the agreement do not specify which of AWS's chips will incorporate Synopsys' blueprints. In addition to the licensing deal, Synopsys will integrate AWS computing and storage services, as well as Amazon Bedrock, to aid in the development and deployment of AI applications.