Synopsys Shares Soar on Multi-Billion Dollar Deals with OpenAI and Amazon

Synopsys (SNPS) shares surged nearly 5% on Wednesday after announcing two significant partnership agreements. The tech company, which provides electronic design automation (EDA) solutions for semiconductor design and testing, has partnered with OpenAI to develop a new AI model called GPT-Synopsys.

The partnership will see Synopsys' EDA tools integrated into the AI model, allowing for more efficient semiconductor design. The two companies have agreed to a revenue-sharing arrangement, but details of this were not disclosed. They will also collaborate on marketing efforts for GPT-Synopsys.

In addition to its partnership with OpenAI, Synopsys has entered into a multi-year agreement with Amazon worth over $1 billion. The deal aims to accelerate Amazon's custom silicon innovation and advance the development of complex AI-powered products and cloud infrastructure.