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Amazon locks in $1 billion-plus Synopsys deal to expand custom chips

The multi-year agreement extends a partnership that dates back more than 15 years and comes as Amazon shares have recouped from a roughly 12% drop since early August.

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Amazon signed a multi-year, $1 billion-plus deal with chip-design specialist Synopsys to deepen its custom silicon strategy, according to MarketBeat Ratings. The announcement, made last Wednesday, extends a partnership that dates back more than 15 years.

The agreement underscores how Amazon is building its own chip options for AI and cloud workloads, including processors and accelerators already designed for its AWS unit. MarketBeat Ratings notes that AWS has developed Graviton processors for general computing and Trainium accelerators.

MarketBeat Ratings also pointed to investor reaction, saying Amazon shares have ticked higher since the news. The outlet added that the stock has been trying to halt a slide, after falling about 12% since the start of August, and it has not set a fresh low since mid-September.

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