Amazon Acquires Perceive to Power Smarter Devices with Edge AI

Key Takeaways

• Amazon acquires Perceive, a subsidiary of Xperi, for $80M.
• Perceive specializes in edge AI processors for wearables, laptops, and security cameras.
• The deal is part of Amazon’s effort to strengthen its edge computing and custom silicon capabilities, particularly for devices like Alexa and Echo.
• The acquisition will increase competition in the edge AI market, with potential ripple effects across the tech industry.

Amazon has acquired Perceive, an Xperi subsidiary specializing in edge device AI inference processors, valuing it at $80 million in cash. The deal is expected to close by the end of 2024, pending customary closing conditions.

Perceive’s technology is designed for power-constrained markets, including wearables, laptops, and security cameras, enabling devices to run large AI models locally without relying on cloud infrastructure.

This acquisition aligns with Amazon’s goal to enhance the performance of its smart devices, such as Alexa, Echo, and Fire TV, by enabling faster and more efficient AI processing on the edge.

Most of Perceive's 44 employees are anticipated to join Amazon, where they will work on Amazon's Devices & Services division, focusing on products like Alexa. This acquisition aligns with Amazon's broader strategy to develop custom silicon and advanced edge computing technologies.

This acquisition strengthens Amazon's AI hardware capabilities and positions it as a more formidable competitor in the expanding edge computing market. Companies like Google and Apple, which are also investing significantly in AI and edge devices, are likely to face increased competition as Amazon enhances its ability to process AI directly on its devices.

Jon Kirchner, CEO of Xperi, expressed optimism about the deal, noting that Amazon's resources and scale could take Perceive’s technology to the next level. Kirchner highlighted the potential for the technology to make a significant impact in the evolving edge inference landscape.

As Amazon continues to expand its investments in AI and custom silicon, this acquisition could set the stage for the next wave of innovation in consumer electronics and IoT devices. The ability to process AI models on-device could lead to faster, more secure, and energy-efficient smart products, benefiting both consumers and developers.