Amazon Is Making Custom AI Chips For Alexa

Amazon will be developing a custom AI chip to work on its smart speakers such as Echo and other products where Amazon Alexa is installed.

In a report by The Information, this new AI chip will allow Alexa-powered devices to respond quicker to commands by allowing more data processing to be handled on the device rather than in the cloud.

This move is similar to what Google and Apple have done in the past by creating their own AI chips to add another difference in the market. The Information says this move affects chip makers like Nvidia and Intel as its customers are now competitors.