Amazon Inks Record-Breaking Deal with Synopsys to Power Custom Chips

Amazon has made a significant move in its custom silicon push by signing a multi-year intellectual property agreement with Synopsys, valued at over $1 billion. The deal will accelerate chip design for Amazon Web Services (AWS), which is becoming a key differentiator for the company.

The partnership builds on 15 years of collaboration and supports AWS's purpose-built chips, including Nitro for cloud security and networking, Graviton for general-purpose computing, and Trainium for AI training and inference. The companies will work together to accelerate multiphysics solutions on Trainium and Graviton and apply AI across silicon-to-system engineering workflows.

Amazon's custom silicon business has already surpassed a $25 billion annual revenue run rate, growing at triple-digit percentages year over year. AWS revenues grew 37% year over year to $42.2 billion in the second quarter of 2026, its fastest growth in 18 quarters.