Amazon NASDAQ:AMZN is developing more custom on-device AI chips for key consumer hardware, including Echo and Fire TV products, as it pushes toward smarter home devices.
Panos Panay, Amazon's head of devices and services, told CNBC the company already makes end-to-end silicon for products such as the Echo Show 8, Echo Show 11 and Fire TV. In October, Amazon introduced its AZ3 and AZ3 Pro chips, designed to run AI models directly on devices instead of relying fully on the cloud.
Panay said custom silicon is important for devices where Amazon wants tighter hardware and software integration, especially for secure, ambient AI experiences in the home. Still, he said Amazon continues to use chips from partners such as Qualcomm.
The company is also exploring future AI gadgets, including on-the-go devices that people carry, talk to and use to collect data.