OpenAI and Synopsys partner to develop AI model for chip design

Synopsys and OpenAI have entered a multi-year strategic partnership to develop GPT-Synopsys, a specialized AI model trained on Synopsys' electronic design automation tools to automate and accelerate chip design. Under the revenue-sharing agreement, OpenAI will pay a subscription fee to train on Synopsys tools, and both firms will share revenue based on the model's performance. Following the announcement, Synopsys projected a strong 15% revenue growth for fiscal 2027, driving its stock up by 7%.

Development and integration of GPT-Synopsys

• ▪Synopsys CEO Sassine Ghazi said the GPT-Synopsys model will run on OpenAI's infrastructure and will be trained using Synopsys' electronic design automation tools, which OpenAI is licensing through a training subscription fee
• ▪Synopsys and OpenAI announced a multi-year strategic partnership to develop GPT-Synopsys, a specialized AI model trained to perform computer chip design and verification
• ▪Synopsys CEO Sassine Ghazi said the GPT-Synopsys model will be integrated with Synopsys' existing AI platforms, including Synopsys.ai and the newly released Synopsys Autopilot workflow orchestration platform
• ▪Synopsys CEO Sassine Ghazi said GPT-Synopsys will directly operate Synopsys' electronic design automation tools to execute multi-step tasks, interpret results, and implement changes based on design objectives specified by engineers

Sassine Ghazi on the partnership

• ▪Synopsys CEO Sassine Ghazi stated that GPT-Synopsys' designs will be validated using traditional computing techniques to verify physical viability and maintain manufacturing rigor
• ▪Synopsys CEO Sassine Ghazi stated that the GPT-Synopsys partnership agreement with OpenAI was structured to avoid cannibalizing Synopsys' existing business

Synopsys stock rise and financial projections

• ▪Following the OpenAI partnership announcement on September 30, 2026, Synopsys shares rose as much as 7% during trading
• ▪At an investor summit on September 30, 2026, Synopsys CEO Sassine Ghazi projected 15% revenue growth for fiscal year 2027, exceeding analyst estimates of 11.19%

OpenAI's Jalapeño chip

• ▪OpenAI reported that its own AI models were used to accelerate parts of the Jalapeño chip's design and optimization process, which was developed with Broadcom
• ▪OpenAI previously collaborated with Broadcom to develop Jalapeño, a custom AI accelerator chip that progressed from initial design to manufacturing tape-out in nine months

Debatable claims

• ▪OpenAI's expansion into semiconductor design tools threatens fair competition in the hardware market
• ▪Semiconductor companies should avoid hosting proprietary chip designs on third-party AI clouds
• ▪AI-driven chip design will phase out entry-level semiconductor engineering roles
• ▪AI models can reliably automate the physical layout of microchips