Story
Synopsys Shares Rise on OpenAI Partnership and Strong Revenue Forecast
Summary
Chip design software leader Synopsys is partnering with OpenAI on a revenue-sharing basis to develop a specialized AI model for semiconductor design, a move that boosted its stock and financial outlook.
Synopsys, a key provider of software for designing semiconductors, announced a revenue-sharing partnership with OpenAI to develop an artificial intelligence model aimed at accelerating the chip design process. The news, coupled with an optimistic revenue forecast, sent the company's shares higher in trading.
The AI Partnership
The collaboration will create a new model named GPT-Synopsys, which will be specifically trained to handle complex tasks in semiconductor design. According to the announcement, the model will learn to use Synopsys's software tools to assist engineers, from initial circuit descriptions to the intricate layout of billions of transistors on silicon.
The goal is to significantly shorten development timelines. OpenAI co-founder Greg Brockman stated in a video that the technology could "shave off weeks, months from the design process and to bring more chips to the world" by helping engineers navigate design trade-offs and optimizations.
Financial Structure and Safeguards
Synopsys CEO Sassine Ghazi outlined the financial terms in an interview with Reuters, explaining that OpenAI will pay a subscription fee to train its model on Synopsys's tools. When customers use the final product, the two companies will share the revenue, with the split based on how effectively the AI improves a chip's design.
Ad"We structured the agreement in a way that it will not be cannibalizing our business," Ghazi said. "It will be an upside to our business given we’re delivering more value to the customer." He also stressed that the AI's work would be verified by traditional Synopsys tools to ensure physical accuracy, calling them essential "guardrails."
Market Impact and Outlook
Investors reacted positively to the news, with Synopsys shares rising as much as 7% following the announcement at an investor summit. The rally was also fueled by the company's updated financial guidance.
Synopsys now projects revenue growth of 15% for its fiscal year 2027. This forecast is significantly above the 11.19% growth that analysts had estimated, according to LSEG data.
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