Amazon Builds AZ3 AI Chips for Echo and Fire TV as Alexa+ Push Deepens
Updated
Updated · CNBC · Jul 2
Amazon Builds AZ3 AI Chips for Echo and Fire TV as Alexa+ Push Deepens
1 articles · Updated · CNBC · Jul 2
Summary
Amazon said it is designing end-to-end silicon for critical consumer devices, with custom chips already used in Echo Show 8, Echo Show 11 and Fire TV products.
AZ3 and AZ3 Pro chips, unveiled in October, are built to run AI models on-device rather than in the cloud, a shift Amazon says can make responses faster and more secure.
Panos Panay said the chip effort supports Alexa+, Amazon's upgraded assistant now generally available in the U.S., as the company tries to tighten hardware-software integration while still using some Qualcomm chips.
Amazon is also exploring portable AI hardware after acquiring Bee last year for its $49.99 voice wristbands, with Panay saying on-the-go devices are on the roadmap as Alexa+ competes with ChatGPT and Google Gemini.
Can Amazon's custom chips make its pricey Alexa+ smart enough to compete with rivals like ChatGPT and Google Gemini?
With Alexa+ sending all voice data to the cloud, is Amazon's on-device AI privacy promise already broken?
Amazon’s Next-Gen Echo and Fire TV: Custom Silicon, 97% Alexa+ Compatibility, and the Future of Smart Home AI
Overview
In late 2025, Amazon responded to growing competition in generative AI by unveiling a major hardware refresh, introducing custom-designed AZ3 and AZ3 Pro silicon chips at the heart of its new Echo and Fire TV devices. These chips feature a powerful AI Accelerator, enabling advanced AI edge models to run directly on the devices. This innovation not only boosts performance and privacy but also strengthens the Alexa+ ecosystem, allowing for smarter, faster, and more natural interactions. Amazon’s strategic move positions it to lead the next wave of smart home technology, setting a new standard for conversational AI experiences.