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Silicon is starting to design silicon — how AI is being used in chipmaking, from EDA tools to OpenAI's Jalapeño and beyond
How close is AI to designing the very same chips it runs on?
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In late August, Architect Labs claimed it had designed a chip that was almost entirely developed by AI, an industry-first achievement. AI is already used to optimize floorplans, placement and routing, verification, and other stages of semiconductor development. Generative AI can assist engineers with RTL code, whereas emerging agentic systems can operate electronic design automation (EDA) tools, analyze results, identify problems, modify designs, and repeat the process with increasingly less human intervention. Meanwhile, human engineers still define and develop architectures and make fundamental design decisions that determine what a chip does and how it works.
This creates a curious feedback loop. Today's AI models run on processors designed by human engineers with growing assistance from AI; those models can then help design more capable processors for the next generation of AI systems. As EDA vendors and semiconductor companies give AI control over progressively larger portions of the design process, the industry is gradually moving from humans using AI tools to design chips toward AI systems participating in the design of the hardware on which their successors will run.
Can machines indeed design machines today? Probably not. But will they be able to do so in the future? That's a big question with important ramifications — and engineers have been pondering it for longer than you might think.
Cadence, Synopsys, and Siemens EDA, all leading developers of EDA software, alongside Ansys — a leading designer of simulation software — rolled out AI-enhanced versions of their tools in the early 2020s, before the generative AI boom took the world by storm.
The first generation of AI-enhanced EDA software primarily used machine learning (ML) and reinforcement learning (RL) to tackle well-defined optimization problems. Given an existing design, a set of constraints, and particular targets, these tools could explore numerous implementation options to optimize placement and routing, and therefore power, performance, and area (PPA), while shrinking development time. Essentially, AI could find a better way to implement a design, but the design itself and its goals were still defined by engineers.
One of the key advantages of these tools was their ability to learn from previous runs and use accumulated data to guide subsequent design-space exploration, something which could reduce the number of iterations needed to meet PPA targets and, in some cases, produce results that would have required considerably more engineering time using conventional methods. Yet the autonomy of these tools is limited, as engineers define constraints, configure flows, run individual tools, analyze their output, and decide what to try next. AI accelerates or optimizes particular stages of chip development, but humans still control the overall design flow. And that's changing with newer generations.
The latest AI-enhanced EDA tools are considerably more ambitious. Generative AI can write or modify RTL and verification code, analyze reports, identify potential points of failure, and even suggest fixes. Meanwhile, emerging agentic systems can operate multiple EDA tools and execute sequences of engineering tasks with very limited human intervention. Such an agent can analyze results, modify a design or its parameters, launch another simulation or implementation run, evaluate the outcome, and repeat the process until it reaches specified targets. As a result, AI is gradually moving from optimizing individual steps inside EDA tools to automating parts of the chip development workflow itself.
In 2023 – 2024, both Cadence and Synopsys announced that hundreds of chip designs have been completed using their AI-enhanced Cadence.ai DSO.ai/VSO.ai/TSO.ai tools. Moreover, leading high-tech companies reveale