Amazon designs custom AI chips for Echo and Fire TV as Alexa Plus expands to mobile devices

Amazon Has New AI Chips for Home Tech Devices and Future Mobile Gadgets

Expertise Smart home | Smart security | Home tech | Energy savings | A/V On Thursday, Amazon's head of devices and services, Panos Panay, discussed the future of Amazon's smart devices with CNBC, which includes the company's own end-to-end silicon chips. In the interview, Panoy also revealed plans for future AI devices and its advanced Alexa Plus AI assistant. That Amazon-only design, currently in AZ3 and AZ3 Pro chips, is in devices I've tested, like the Echo Show 8 and Echo Show 11 (now in my kitchen), as well as the Fire TV. Panay says more devices are on the way. The latest chips are designed to run as much AI on-device as possible, improving response times and generally making it more secure than relying on cloud processing. "If we're going to go deliver this ambient experience in the home for people in the most secure way, we definitely need to think about how that end-to-end delivery of hardware comes together," Panay said, although he added that Amazon is still using Qualcomm chips for other purposes. This may also give Amazon more control over device pricing. While computer chips aren't facing quite the same AI-related cost leaps as graphics processing units -- something CNET has termed RAMageddon -- prices are still rising. Keeping the manufacturing process mostly in-house could help Amazon dictate consumer prices with more discretion. An Amazon representative did not immediately respond to a request for comment. Amazon's chips are only the start of a new focus on AI Why the new focus on end-to-end chip design? According to Panay, it comes down to improving security and AI, especially its Alexa Plus capabilities. Alexa Plus is the latest version of Amazon's voice assistant (free with Amazon Prime, $20 for most capabilities otherwise), built with conversational AI. I've used it to talk through recipes, to change its own settings, to create automatic conversations for my doorbell, to order GrubHub and for plenty more, but Amazon is just getting started. "I think we might be moving away from a world of apps and screens," Panay said to CNBC, underlining Amazon's focus on the voice assistant. He said Amazon has a lab full of devices it's testing, including a "whole roadmap of on-the-go devices." That would explain Amazon's purchase of wearables brand Bee in 2025. What those mobile Alexa Plus devices look like remains to be seen, but according to Amazon, we won't have to wait long. We've already seen devices like AI pins that can listen to your daily conversations and take notes on them, but they haven't been especially useful and have raised privacy questions about what this technology listens to. Speaking of privacy, it's worth noting that Amazon automatically processes voice commands given to devices like the Echo Show 11 for analysis, and while you can turn other Alexa settings off, you can't adjust that one. This new wave of AI devices is likely to come with similar requirements, so think about how much you want Amazon to know about you.

Amazon is designing its own AI chips for Echo, Fire TV and future devices, exec tells CNBC

Amazon launched Alexa+ for general availability in the U.S. this year. Alexa+ is a souped-up version of Amazon's digital assistant, which can handle more complex queries and tasks. Alexa+ can learn context and user patterns. Amazon has a range of hardware from Ring doorbells to Echo Devices and Fire TV. Alexa+ is intended to help users tie all their Amazon products together. As Amazon's digital assistant gets advanced capabilities, Panay said he was thinking about how users will interact with devices and what that means for future gadgets. "I think we might be moving away from a world of apps and screens," Panay said, adding that "conversation and context" will be more important for AI assistants. Asked what kind of gadgets the company was working on, Panay said: "When you think about the future of AI devices, you got to be super skeptical right now for anyone who tells you they know what they are. I have a lab full of devices." Last month, Qualcomm CEO Cristiano Amon told "The Tech Download" that the company was working on 40 new AI-powered devices as consumer electronics companies look for the next big hit after the smartphone. Alexa+ will continue to compete with offerings from ChatGPT with OpenAI and Google Gemini which are also going after the consumer experience. Google is using the reach of the Android operating system to acquire more users, while companies like Samsung are building a lot of their AI features on Gemini models. For Amazon, Alexa+ is a way for the company to lock users into its own ecosystem of devices and e-commerce. Last year, Amazon made a major foray into wearables when it acquired Bee, a company that makes $49.99 wristbands that can understand voice and create lists, answer questions and draft notes. Panay said there is a "whole roadmap of on-the-go devices." The executive described these devices as gadgets that people carry with them, that collect data and that people talk to. "So when you are back in the home or when you are at work, that connection stays consistent and contextual," Panay said. He added that "you won't have to wait long" for an Amazon product like this.

Amazon devices chief Panos Panay says AI is moving beyond screens and apps

Amazon's SVP of devices, Alexa and Leo, Panos Panay joins Arjun Kharpal to discuss how artificial intelligence is reshaping the company's hardware strategy, from Alexa and Echo devices to wearables, smart glasses, robotaxis and satellites. Amazon's SVP of devices, Alexa and Leo, Panos Panay joins Arjun Kharpal to discuss how artificial intelligence is reshaping the company's hardware strategy, from Alexa and Echo devices to wearables, smart glasses, robotaxis and satellites. Panay explains why Amazon sees AI devices less as a single new gadget and more as an ambient system that follows users across the home, on the go and eventually into the car. He says Alexa Plus marks a shift away from the old voice-assistant model, where users had to speak in specific commands, toward a more contextual assistant that can remember preferences, understand routines and act more proactively. The conversation also looks at Amazon's broader physical AI ambitions, including Zoox, Amazon Leo and the company's growing focus on custom silicon. Panay explains how chips, cloud infrastructure, satellite connectivity and consumer devices could become more closely connected as AI moves between the cloud and the edge. Subscribe to "The Tech Download" wherever you get your podcasts.

Amazon Is Quietly Building its Own AI Chips As Devices Chief Panos Panay Reveals a Bigger Bet Beyond Qual

Amazon.com Inc. (NASDAQ:AMZN) is ramping up its efforts to produce custom chips for its key consumer devices, as revealed by the company's top hardware executive. On Wednesday, Panos Panay, the head of devices and services at Amazon, shared the company's semiconductor strategy in an interview with CNBC's "The Tech Download" podcast. Panay revealed that Amazon is manufacturing its own end-to-end silicon for devices it ships, including the Echo Show 8, Echo Show 11, and Fire TV. Amazon Builds Its AI Ecosystem Amazon's intensified focus on in-house chip production aligns with its recent initiatives to enhance its AI capabilities. Amazon has rolled out Alexa+ across the U.S., an AI-powered upgrade to its voice assistant that can handle more complex tasks, learn user preferences, and seamlessly connect devices across the company's Ring, Echo, and Fire TV ecosystem. In May, Amazon launched Alexa for Shopping, a new AI shopping bot that revolutionizes Amazon's search bar into a Q&A engine. This tool, which merges the functionalities of Rufus and Alexa+, uses user shopping data to craft a personalized AI shopping assistant. Last month, Bank of America reiterated its Buy rating on Amazon, citing the potential of Alexa AI to be the real winner of the Prime Day event. Analysts view the event as a strategic opportunity for Amazon to increase awareness and engagement with Alexa for Shopping, its AI-powered shopping assistant. The Future of AI Devices Panay said advances in AI could move computing beyond traditional apps and screens toward more natural, context-aware conversations, though he noted the future form factor for AI devices remains uncertain. Last month, Qualcomm CEO Cristiano Amon said is working on more than 40 AI-powered devices -- including smart glasses, earbuds, jewelry, pins, and watches -- designed to act as personal AI assistants and potentially reshape the consumer hardware market. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.