Amazon is designing its own custom artificial-intelligence chips to run its consumer devices, according to CNBC, which reported that the company's hardware chief, Panos Panay, confirmed the effort in an interview.
Panay said Amazon is building in-house chips for key products including its Echo smart speakers and Fire TV streaming devices. According to CNBC, he also indicated the chips would power "future devices," and coverage of the interview noted hints at on-the-go or portable gadgets that Amazon is experimenting with.
The move reflects a broader push at Amazon to design silicon tailored specifically to AI features running directly on hardware, rather than relying entirely on chips from outside suppliers. Reports from outlets including Seeking Alpha described the effort as custom "on-device" AI chips for the Echo and Fire TV lineups, meaning at least some AI processing would happen on the device itself.
Panay framed the shift in broad terms, telling CNBC that AI is "moving beyond screens and apps" — a signal that Amazon sees artificial intelligence becoming embedded across everyday gadgets rather than confined to phones and computers.
Designing custom chips gives a company tighter control over performance, cost and the specific AI capabilities its devices can offer. It also reduces dependence on third-party chipmakers, a strategy several large technology firms have pursued as demand for AI computing has surged.
Why it matters: if Amazon can bake AI directly into affordable, mass-market gadgets like Echo and Fire TV, it could bring more capable AI assistants into millions of living rooms — and intensify the race among tech giants to own the hardware that AI runs on.