Synopsys Soars on AI Deals with OpenAI and Amazon Worth Over $1 Billion

Synopsys, a leading chip design software maker, has announced major AI deals with OpenAI and Amazon. The company's shares surged by 10% in recent trading after the announcements.

Under the terms of its multi-year deal with Amazon, Synopsys will work together to accelerate Amazon's custom silicon innovation and advance the development of increasingly complex AI-powered products and cloud infrastructure. The agreement is worth over $1 billion.

The company has also partnered with OpenAI to jointly develop an AI model that can perform tasks in the chip design process. This model will be licensed to other companies, with Synopsys and OpenAI sharing revenue from its use.

Synopsys also gave upbeat growth targets for fiscal 2027, expecting $11.1 billion to $11.2 billion in revenue and adjusted earnings per share of $19.04 to $19.12.