Amazon is designing custom AI chips for its Echo and Fire TV devices, the company's devices and services chief Panos Panay told CNBC in an interview. Panay disclosed that Amazon's custom silicon powers devices including the Echo Show 8, Echo Show 11, and Fire TV, with chips designed to run AI models on-device rather than in the cloud. The move reflects a broader industry trend where hardware makers like Apple pursue custom chip designs for tighter hardware-software integration and enhanced security in consumer electronics.
Amazon Deploys Custom AZ3 Chips in Echo and Fire TV Products
Amazon unveiled the AZ3 and AZ3 Pro chips in October, designed to run AI models on-device rather than in the cloud. "We do make our own end-to-end silicon for the devices that we ship," Panay stated in the CNBC interview. The executive explained that custom silicon is deployed in devices such as the Echo Show 8, Echo Show 11, and Fire TV. Panay emphasized that end-to-end silicon control is necessary for "critical devices" to achieve secure hardware-software integration and deliver ambient home experiences.
Panos Panay Confirms Continued Use of Qualcomm Chips
Despite the custom chip initiative, Amazon continues to use chips from companies like Qualcomm for certain devices. Panay confirmed that the company maintains partnerships with external chip suppliers alongside its internal silicon development efforts. The dual approach allows Amazon to balance custom integration for priority products while leveraging established suppliers for other hardware lines.
Alexa+ Launches for General Availability in U.S.
Amazon launched Alexa+ for general availability in the U.S. this year. Alexa+ is an advanced version of Amazon's digital assistant that handles more complex queries and tasks, learns context and user patterns, and ties together Amazon's hardware range including Ring doorbells, Echo devices, and Fire TV. Panay stated that "conversation and context" will become more important for AI assistants, suggesting a shift away from "a world of apps and screens."
Amazon Acquires Bee Wearables Company
Last year, Amazon acquired Bee, a company that produces $49.99 wristbands capable of understanding voice commands and creating lists, answering questions, and drafting notes. The acquisition marked Amazon's major entry into the wearables market. Panay described a "whole roadmap of on-the-go devices" that people carry, that collect data, and that users interact with through conversation, maintaining consistent and contextual connections across home and work environments.
Panay Announces Roadmap for On-the-Go Devices
Panay confirmed Amazon is developing portable devices that extend beyond stationary home products. "You won't have to wait long" for an Amazon product in this category, Panay stated. When asked about specific future gadgets, Panay cautioned: "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." The executive indicated that experimentation with different AI-enabled device formats is ongoing.
FAQ
What custom chips did Amazon announce for its devices?
Amazon unveiled the AZ3 and AZ3 Pro chips in October, designed to run AI models on-device. Panos Panay confirmed these custom chips are deployed in the Echo Show 8, Echo Show 11, and Fire TV devices.
What is Alexa+ and when did it launch?
Alexa+ is an advanced version of Amazon's digital assistant that launched for general availability in the U.S. this year. It handles more complex queries, learns context and user patterns, and integrates Amazon's hardware products including Ring doorbells, Echo devices, and Fire TV.
