Amazon signed a multi-year Synopsys deal worth more than $1 billion to build custom-chip tools. Its chip business already brings in more than $25 billion a year, supporting growth, though savings are estimates and AWS will keep working with Nvidia.
The added design and testing tools could help Amazon make its own AI chips cheaper to use. The company already has large customer commitments for Trainium, giving the effort a path to grow. Still, savings are estimates, and AWS says it will remain a major Nvidia partner. Those limits temper the news, but do not erase support for Amazon's growing chip business.
Synopsys signed a multi-year deal worth more than $1 billion with Amazon. The agreement could bring license fees and royalties as chip production grows, though the deal spans multiple years.
Amazon is expanding chip designs meant to provide alternatives to Nvidia processors. This adds competition, though AWS says it intends to remain a major Nvidia partner.
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