Synopsys and Amazon Sign Multi-Year Silicon IP Agreement Valued at More Than $1 Billion
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Synopsys, Inc. (NASDAQ:SNPS) announced a multi-year agreement with Amazon (NASDAQ:AMZN) valued at more than $1 billion, covering silicon intellectual property and engineering software for Amazon's custom chip development. Under the agreement, Amazon will become the lead customer for Synopsys' application-optimized silicon IP business. The arrangement expands a collaboration between the companies that has lasted for more than 15 years. The agreement covers Synopsys' electronic design automation (EDA), simulation and analysis, and agentic artificial intelligence technologies. These tools will support Amazon's custom silicon portfolio, including its Nitro, Graviton and Trainium processors. The companies have structured the agreement around a license-plus-royalty business model. Under the arrangement, payments to Synopsys are designed to increase alongside Amazon's production volumes. Peter DeSantis, SVP of foundational AI, custom silicon, and quantum computing at Amazon, said the expanded collaboration would support the company's chip development process. The partnership helps Amazon "move faster across the design cycle, helping us deliver more capable, efficient computing for customers worldwide," DeSantis said. The agreement also expands Synopsys' use of Amazon's cloud infrastructure. Synopsys will adopt Amazon Web Services infrastructure for its own product development...
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