Synopsys Inc. (SNPS) is expanding its silicon intellectual property business into application-optimized designs, with Amazon.com Inc. (AMZN) becoming the lead customer under a new multi-year agreement.
The deal broadens a 15-year relationship and increases Amazon’s use of Synopsys technology as the cloud provider builds its own processors for general computing and artificial intelligence (AI) workloads.
Silicon intellectual property (IP) refers to reusable components of a chip design. Under the agreement, Amazon will expand its use of Synopsys IP to include designs optimized for particular applications rather than relying only on more general-purpose building blocks.
At the time of this writing, SNPS stock traded nearly 3% higher, and AMZN stock was also marginally up.
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