Wal-Mart is signing a $10 million contract with a digital thermometers company that it hopes will help it compete with Amazon’s digital thermometric sensors and software.
The agreement comes a week after Amazon bought a controlling stake in Digital Thermometers, an online marketplace for thermometers and thermometers-related items.
Wal-Marts online store has struggled to keep pace with competitors like Amazon’s Mechanical Turk.
Wal-Mart has been exploring the potential of its own digital thermography company.
Last month, the company announced a partnership with a Chinese company, Zhenhua Precision Digital, that is aiming to build a thermostat that is compatible with the company’s online store.
Walmart and Zhenhan Precision Digital said they will collaborate to develop a software suite that will help the digital thermogram company build products for Walmart and the online retailer.
The new deal is worth $10.4 million, according to a person familiar with the matter.
The Wal-mart deal with Zhenhai Precision Digital comes after the company had its first contract with Walmart earlier this year, according.
Zhenhani Precision Digital’s goal is to create a thermometer that can work on a range of devices including smartphones and tablets.
WalMart has faced growing competition from Amazon’s online thermostats, which it is also competing with.
Amazon has recently announced that it plans to sell a smart thermostatic device called the Nest thermostatt.