Although these devices already use local processing to listen for the "Alexa" wake word, they still send the full voice command up to Amazon's servers for interpretation. Amazon is hoping to improve its relationship with shoppers over the years through its in-house devices.
We already know that Google has AI chips - so much so that it gave one away on the front of a magazine previous year.
We can also expect Amazon's newer hardware efforts in future to support its online retail business.
Not to be outdone by Apple and Google, Amazon has reportedly begun development of its own artificial intelligence chip. Parsing those phrases on the device could allow Alexa to respond faster.
Two separate reports claim it has started to develop its own artificial intelligence chip and also a year ago acquired a security camera company that has designed a low-energy chip that can be used in "internet of things" devices.
Moving away from third-party chips is a clear indication that Amazon is all-in on AI.
While Amazon has around 450 employees with the expertise of developing AI-powered chips for Alexa, it will face a challenge in manufacturing these chips as it does not have fabrication experience nor does it have manufacturing units in China. The company ditched its long-time GPU producer previous year to create the in-house graphics chips found in the iPhone 8 and iPhone X. According to The Information who first reported the news, Amazon acquired Annapurna Labs - an Israeli chipmaker in 2015.
Sources say that Amazon.com paid as much as $90 million in the acquisition of the Blink home security camera maker late in 2017, in a bet it kept secret on the energy-efficient chips of the startup. It also bought Blink - a security camera manufacturer past year. Share your views in the comments section.