Amazon to make custom chips for devices in AI-first pivot
Technology
Amazon just announced it's making custom chips for its gadgets, a big shift after 20 years of relying on outside processors.
Panos Panay, who heads devices at Amazon, said the company is pivoting to an AI-first strategy.
Its own silicon already powers Echo Show and Fire TV, so expect even smarter tech soon.
Amazon and Alchip target 40 million units
The new chips will start showing up in Kindles, Echos, Blink cameras, and Ring doorbells by 2027.
Amazon is teaming up with Alchip for design and testing, aiming to ship 40 million units each year once things ramp up.
To keep these AI projects going strong, it is tightening budgets: free cash flow dropped 95% in the 12 months ended first quarter 2026 to $1.2 billion as it invests more in tech.