Amazon is focused on making chips for its “critical” consumer devices, the company’s top hardware executive told CNBC.
In an in-depth interview on CNBC’s The Tech Download podcast, Panos Panay, Amazon’s head of devices and services, discussed for the first time the company’s approach to semiconductors in its own hardware and how it is experimenting with different types of AI-enabled gadgets.
“We make our own end-to-end silicon for the devices we supply,” Panay said.
He said Amazon’s custom silicon is featured in devices like the Echo Show 8, Echo Show 11 and Fire TV.
In October, Amazon introduced the AZ3 and AZ3 Pro chips, designed to run AI models on the device rather than in the cloud. Many device manufacturers consider locally running AI to be faster and safer.
Panos Panay, senior vice president of devices and services at Amazon.com Inc., speaks during Amazon’s product event in New York, U.S., on Tuesday, September 30, 2025.
Michael Nagle | Bloomberg | Getty Images
Some hardware manufacturers like Apple Design their own chips, which can give a consumer electronics company more control over the integration of hardware and software.
“For some of the more critical devices right now, our focus is on end-to-end silicon, because if you really want that hardware and software connection… and if we want to give people that ambient experience in the safest way possible at home, we definitely need to think about how to get that end-to-end delivery of hardware,” Panay said.
Panay added that the company still also uses chips from companies like Qualcomm.
For Amazon, the focus on custom chips is part of its broader effort to improve AI on devices.
Amazon launched Alexa+ for general availability in the US this year. Alexa+ is a souped-up version of Amazon’s digital assistant that can handle more complex requests and tasks. Alexa+ can learn context and user patterns. Amazon offers a range of hardware, from Ring doorbells to Echo devices and Fire TV. Alexa+ is designed to help users connect all of their Amazon products together.
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What Panos Panay said about future AI gadgets
As Amazon’s digital assistant gains expanded capabilities, Panay said she’s thinking about how users will interact with devices and what that means for future gadgets.
“I think we could move away from a world of apps and screens,” Panay said, adding that “conversation and context” will be more important for AI assistants.
Asked what gadgets the company is working on, Panay said: “When you think about the future of AI devices, right now you have to be very skeptical of anyone who tells you they know what that is. 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 thing after the smartphone.
Alexa+ will continue to compete with offerings from ChatGPT with OpenAI and Google Gemini, which also target the consumer experience. Google is leveraging the reach of the Android operating system to attract more users, while companies like Samsung are building many of their AI capabilities on Gemini models.
For Amazon, Alexa+ is a way to lock users into its own ecosystem of devices and e-commerce.
Last year, Amazon made a big push into wearables when it acquired Bee, a company that makes $49.99 wristbands that can understand language, make lists, answer questions and write notes.
Panay said there is a “complete roadmap for mobile devices.” The CEO described these devices as gadgets that people carry with them, that collect data and that people talk to.
“So when you’re back at home or at work, that connection remains consistent and contextual,” Panay said.
He added that you “don’t have to wait long” for an Amazon product like this.
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https://www.cnbc.com/2026/07/02/amazon-ai-chips-devices.html
