Amazon follows Apple & Google, plans to develop AI chips for Alexa

Retail behemoth Amazon reportedly plans to develop AI chips for its Echo devices. An article by TheVerge states that these chips will enable Alexa-powered instruments to quickly respond to user commands through their ability to process more device data. Amazon’s initiative to design its own AI chips for adding speech recognition to Alexa-driven devices equipment may indeed, enable the voice assistant to provide a quicker response. According to industry analysts, the retail giant’s strategic move is aimed at competing against reputed brands such as Google and Apple, both of which have deployed AI hardware at different scales.

The Information reports that Amazon, encompassing a staff strength of 450, empowered with chip expertise, aims to dominate the smart home hardware sector and remain competitive in consumer-based AI product development business. Myriad acquisitions made by the eCommerce giant over the past few years has apparently created a successful platform for the firm to manufacture AI chips. Prior records reveal that in 2015, Amazon had purchased AI chip maker Annapurna Labs in a deal worth USD 350 million. Annapurna is reported to manufacture AI chips compatible with Amazon’s hardware requirement.

Industry analysts predict that Amazon’s AI chip creating initiative may pose a challenge to firms such as Intel Corporation and Nvidia, who are in the business of chip production. Apparently, both the firms have shifted to a new domain of manufacturing AI based chips and plan to explore the new business growth opportunities across the chip manufacturing sector.

Amazon seems to have followed the lines of tech giants such as Apple and Google, who were the early movers in the AI chip manufacturing industry. For the record, Apple started manufacturing the A11 Bionic chip that offers new features such as Face ID and ARKit apps. Now, Google seems to have commenced the manufacturing of custom AI chips for devices such as Clips Camera as well.


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Dhananjay Punekar

Dhananjay develops content for Market Size Forecasters. A post graduate in mathematics as well as business administration, he worked as a process executive in Infosys BPO Limited before switching his professional genre. Following his childhood passion, he opted for a career in writing and now pens d...

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