Amazon Web Services announced a multi-year agreement on Wednesday to license chip design intellectual property from Synopsys (Nasdaq: SNPS) in a deal valued at more than $1 billion, the companies said.
The agreement names Amazon as the lead customer for Synopsys’ silicon IP business as it expands into what the company calls application-optimized IP — blueprints tailored for specific chip types rather than generic components. The deal also marks a shift in Synopsys’ licensing model toward a license-plus-royalty structure, with royalty payments tied to production volumes, the company said.
AWS designs a range of its own chips, including Graviton central processors, Trainium AI chips, and Nitro chips for cloud security, networking, and storage. The two companies did not specify which AWS chips will use Synopsys blueprints, according to Reuters.
The agreement also expands Amazon’s use of Synopsys’ electronic design automation software,…
https://finance.yahoo.com/technology/articles/aws-signs-1b-chip-design-134633158.html
