Amazon and Synopsys sign billion-dollar deal on AI chip design

Amazon will license Synopsys chip designs and design tools to create and optimize new AI chips in a multi-year partnership worth over a billion dollars. Synopsys will adopt Amazon Bedrock to build and deploy AI agents, use AWS compute and storage, and optimize its tools for Amazon hardware.

Why it matters: It shows hyperscalers deepening in-house silicon efforts to reduce dependence on Nvidia, while chip-design tooling vendors tie themselves to cloud AI platforms. The agent-driven design workflow also hints at AI being used to speed up its own hardware development cycle.