According to sources the basic idea behind the move is to shift to an on-device processor that can help with rapid responses to users’ commands, in place of the current dependence on the cloud to provide with the solutions and the loss of time in the process. Meanwhile the details are yet to emerge as to how exactly Amazon expects to make the chips in light of the company not having any previous direct manufacturing experience.



Moreover some of the established makers of chips will definitely be affected by this decision by Amazon. Some of them, like Intel and Nvidia had even switched to making AI-based chips hoping to fulfill the increasing demand from customers, including Amazon. Accordingly Apple and Google moved into hardware making in-house long back where many of their products, including iPhones and the special features in them, are driven by these chips designed and made by the company.

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Further AI is at least one segment where Apple has exclusive control over technology, with its neural engine. Furthermore with Amazon joining the race, interesting times are ahead in the AI based chipsets space.

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