The agreement, valued at more than $1 billion, transitions Synopsys to a license-plus-royalty revenue model that allows payments to scale alongside Amazon's production volumes. In a reciprocal arrangement, Synopsys will expand its use of Amazon Web Services infrastructure and further optimize its software for Amazon's proprietary hardware. The deal was disclosed during a Synopsys Investor Day.
Tuesday, October 20, 2026
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Synopsys Signs $1B Amazon Deal to Shift to Royalty Payments
Tech21 days ago
Amazon has contracted Synopsys to provide application-optimized intellectual property for its internal semiconductor portfolio, including its custom AI and server chips. Under the multi-year agreement, the e-commerce giant will integrate Synopsys's engineering software and silicon tools into its Graviton, Trainium and Nitro chip lines while serving as the lead customer for the vendor's specialized IP business.
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