Amazon Signs $1 Billion Deal to Boost Custom Chip Designs

Amazon has signed a multi-year deal worth over $1 billion with Synopsys to boost its custom chip designs for AWS.

The agreement will see Amazon become the lead customer for Synopsys' new application-optimized silicon IP business, which provides reusable chip designs tailored to specific workloads.

Synopsys and Amazon will also tailor software for Amazon's Trainium AI chips and Graviton processors. This move is part of Amazon's push to improve the economics of AI computing with custom chips.

According to Amazon, its custom-chip business has already surpassed a $25 billion annual revenue run rate and is growing at a triple-digit percentage year over year.