Amazon.com Inc (AMZN  ) is dialing up a second attempt at the smartphone market. More than a decade after the Fire Phone was scrapped, the e-commerce giant is developing a new device known internally as "Transformer." The project lives within Amazon's devices and services unit. The initiative aims to fulfill founder Jeff Bezos' vision of a ubiquitous, voice-driven "Star Trek" computer, reported Reuters, citing sources.

AI Integration Over App Stores

The "Transformer" project reportedly prioritizes artificial intelligence. Sources told Reuters that AI capabilities could eliminate the need for traditional app stores.

Alexa remains a core feature, but it may not serve as the primary operating system.

The device is envisioned as a mobile personalization device. It seeks to streamline access to Prime Video, Prime Music and Grubhub.

Amazon did not immediately respond to Benzinga's request for comment.

The 'ZeroOne' Breakthrough Mandate

According to Reuters, a year-old group called ZeroOne leads the development. Former Microsoft Corp (MSFT  ) executive J Allard heads the unit.

Reuters sources indicate Amazon is exploring both traditional smartphones and "dumbphones." The latter would mirror the minimalist Light Phone to counter screen addiction.

Fueling the AI Infrastructure

This hardware push coincides with massive backend investments. On Thursday, Nvidia Corp (NVDA  ) VP Ian Buck said that Nvidia will deliver 1 million AI chips to Amazon Web Services (AWS) by 2027.

Additionally, Amazon and Meta Platforms Inc (META  ) are driving a record $45.1 billion data center construction boom to power these emerging technologies.

AMZN Price Action: Amazon.com shares were down 0.60% at $207.50 during premarket trading on Friday, according to Benzinga Pro data.