Synopsys Signs $1 Billion-Plus Silicon IP, AI Software Deal With Amazon

01:08 PM EDT, 09/30/2026 (MT Newswires) -- Synopsys (SNPS) signed a $1 billion-plus deal to help accelerate the engineering of Amazon.com (AMZN) custom chips and Amazon Web Services infrastructure using its software offerings. The multiyear agreement will see Synopsys expand its silicon intellectual property business to serve growing demand for application-optimized IP, with the e-commerce giant as its "lead" customer, the software company said Wednesday. "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," Peter DeSantis, senior vice president of foundational AI, custom silicon and quantum computing at Amazon, said. Synopsys shares were up 1.6% in Wednesday afternoon trade, while Amazon rose 2.1%. Synopsys and Amazon intend to work together on applying AI across silicon-to-system engineering workflows, including includes deploying Synopsys' AI-powered electronic design automation. Synopsys will adopt Amazon Elastic Compute Cloud and Amazon Bedrock to accelerate its own product development using Amazon Web Services, or AWS, and co-develop agentic AI tools optimized for Amazon's custom-designed Trainium and Graviton processors. AWS is Amazon's cloud-computing platform. Amazon and other hyperscalers are spending huge sums to expand their AI infrastructure footprints globally amid growing demand for AI and cloud services. In July, Amazon raised its full-year capital expenditures outlook to roughly $220 billion from $200 billion, driven by higher memory costs. Earlier in September, Qualcomm (QCOM) agreed to provide custom-built chips and high-speed optical connectivity for AWS AI data centers as part of a collaboration. Last month, Synopsys raised its full-year outlook after its fiscal third quarter results topped Wall Street's estimates. Earlier this month, Berenberg called the company's latest results "lackluster," but noted its continued strong margin execution so far this year. "We expect upward consensus earnings revisions post-(third quarter)," Berenberg said in a Sept. 17 note to clients. Price: 422.15, Change: +7.06, Percent Change: +1.70