Amazon Secures $1B+ Synopsys Deal for Custom AI Chips

Amazon's AWS division has signed a multiyear chip-design licensing agreement with Synopsys worth more than $1 billion, expanding its custom AI chip strategy.

The deal gives AWS access to Synopsys' chip-design intellectual property and engineering tools as Amazon develops its own Trainium AI accelerators and Graviton processors.

This move adds another layer to Amazon's strategy of bringing more of the AI infrastructure stack in-house instead of relying entirely on outside chip suppliers.

AWS has been expanding custom silicon as AI demand drives enormous spending across cloud infrastructure. AWS revenue recently grew about 37% year over year to $42.2 billion, its fastest growth rate in 18 quarters.