Amazon Bets on ZeroOne for Next-Gen Gadgets

ZeroOne, based in Seattle, Sunnyvale and SF, launched in Sept 2024 to drive product R&D

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May 29, 2025
Summary
  • Sets up ZeroOne group led by Xbox/Zune architect J. Allard to build innovative consumer hardware
  • ZeroOne launched Sept 2024, with teams in Seattle, San Francisco and Sunnyvale
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Amazon (AMZN, Financial) edged higher after unveiling ZeroOne, a dedicated group led by ex-Microsoft (MSFT, Financial) executive J. Allard to develop “breakthrough” consumer gadgets.

The Seattle-based team—backed by offices in San Francisco and Sunnyvale—launched in September 2024 and aims to revive Amazon's hardware edge after mixed results with Kindle (over 200 million devices sold), Echo smart speakers (100 million units) and the ill-fated Fire Phone that bowed out after 12 months.

Allard, the architect behind Xbox and Zune, will helm product strategy and R&D to fast-track next-gen experiences. ZeroOne follows Amazon's February AI-powered Alexa reveal and reflects the company's push to diversify revenue beyond retail and AWS.

Investors should care because a successful hardware reset could unlock new high-margin revenue streams and deepen user lock-in across Amazon's ecosystem.

With Amazon rumored to host a fall hardware event, markets will be watching ZeroOne's first prototypes and timeline for product rollouts.

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