Amazon is focused on building chips for “critical” consumer devices, a top hardware executive at the company told CNBC.
In a wide-ranging interview on CNBC’s “The Tech Download” podcast, Panos Panay, Amazon’s head of devices and services, spoke for the first time about the company’s approach to semiconductors in its hardware and how it is experimenting with different types of AI-enabled gadgets.
“We manufacture end-to-end silicon for the devices we ship in-house,” Panay said.
He said Amazon’s custom silicon is in devices like the Echo Show 8, Echo Show 11 and Fire TV.
In October, Amazon announced its AZ3 and AZ3 Pro chips, which are designed to run AI models on devices rather than in the cloud. Many device manufacturers believe that AI that runs locally is faster and more secure.
Panos Panay, senior vice president of devices and services at Amazon.com Inc., speaks at Amazon’s product event in New York, USA, on Tuesday, September 30, 2025.
Michael Nagle | Bloomberg | Getty Images
Some hardware manufacturers apple By designing their own chips, consumer electronics manufacturers will have more control over the integration of hardware and software.
“Right now, for some of the more critical devices, we’re focused on end-to-end silicon, because if you really want the connectivity between the hardware and the software, as you say… and if you’re going to deliver this ambient experience to people in the most secure way, you definitely need to think about how the end-to-end delivery of the hardware is done,” Panay said.
Panay added that the company also currently uses chips from companies such as: Qualcomm.
For Amazon, the focus on custom chips is part of a broader effort to improve AI on its devices.
Amazon made Alexa+ generally available in the US this year. Alexa+ is an improved version of Amazon’s digital assistant that can handle more complex queries and tasks. Alexa+ can learn context and user patterns. Amazon carries a variety of hardware, from Ring doorbells to Echo devices to Fire TV. Alexa+ is intended to help users connect all of their Amazon products.
What Panos Panay has to say about future AI gadgets
Panay said that as Amazon’s digital assistant gains advanced capabilities, he is thinking about how users interact with the device and what that means for future gadgets.
“I think we’re moving away from a world of apps and screens,” Panay said, adding that “conversation and context” will become more important for AI assistants.
When asked what kind of gadgets the company is working on, Panay said, “When you think about the future of AI devices, you have to be very skeptical at this point of time of anyone who says they know what it is. My lab is full of devices.”
Last month, Qualcomm CEO Cristiano Amon told The Tech Download that the company was working on 40 new AI-enabled devices as consumer electronics makers searched for the next big hit in smartphones.
Alexa+ will continue to compete with ChatGPT’s offerings with OpenAI and Google Gemini, which also pursue consumer experiences. Google is leveraging the influence of its Android operating system to reach more users, while companies like Samsung are building more AI capabilities on top of the Gemini model.
For Amazon, Alexa+ is a way to lock users into its devices and e-commerce ecosystem.
Last year, Amazon made a big move into the wearables space by acquiring Bee, a company that makes a $49.99 wristband that can understand your voice, create lists, answer questions, and draft notes.
Panay said there is a “whole roadmap for on-the-go devices.” The executive described these devices as gadgets that people carry around, that collect data, and that people talk to.
“So whether you go home or go to work, that connection stays consistent,” Panay said.
He added that for Amazon products like this, “you don’t have to wait long.”
