Synopsys and Amazon have signed a multi-year, $1 billion IP agreement to support the future development of Amazon custom chips and AWS infrastructure.

According to the electronic design automation (EDA) firm, the deal marks the expansion of Synopsys’ silicon IP business, with Amazon serving as its lead customer.

Amazon has been developing its own custom chips since 2015, following the company’s acquisition of chip design firm Annapurna Labs. Its product portfolio now comprises Trainium for AI training and inference and Graviton for general cloud computing and agentic AI, with both chips based on the Nitro System for security and networking.

In July 2026, Amazon reported that its custom chip business had surpassed $25 billion in annual revenue run rate.

Under the terms of the agreement, Amazon will gain access to Synopsys' application-optimized silicon IP, in addition to the company’s EDA, simulation and analysis, and agentic AI technologies.

In return, Synopsys will adopt Amazon EC2 and cloud storage services to boost the development of its own IP and EDA tools, and use Amazon Bedrock to build and deploy AI applications and agents.

The partners will also work together to accelerate multiphysics solutions on Trainium and Graviton, and plan to collaborate on AI applications across silicon-to-system engineering workflows. Additionally, Amazon plans to develop and deploy custom agentic AI capabilities to help its engineering teams design, analyze, optimize, and validate complex chips and systems more efficiently.

"Amazon has invested in custom silicon for more than a decade, and it has fundamentally changed what's possible for AWS and our customers," said Peter DeSantis, SVP, foundational AI, custom silicon, quantum computing at Amazon. "From Graviton to Trainium, purpose-built chips deliver better performance at lower cost because they're designed for exactly what customers need. As our chip designs grow more ambitious and AI reshapes the engineering process itself, Synopsys helps us move faster across the design cycle, helping us deliver more capable, efficient computing for customers worldwide."

Sassine Ghazi, president and CEO of Synopsys, added: "Special-purpose silicon is at the heart of AWS innovation. As we expand into application-optimized IP solutions, we're proud to have Amazon as our lead customer for this next phase of growth. More broadly, by combining Amazon's leadership in AI infrastructure and custom silicon with Synopsys' leadership in silicon IP, EDA, and Multiphysics solutions, we can dramatically increase the productivity of our teams and shape the future of AI-native engineering."

DCD spoke to Amazon about its custom silicon offerings in the most recent issue of DCD Magazine. You can read it here.