Amazon is set to release a upgraded version of its Alexa voice assistant in October, which will primarily be powered by Claude, an artificial intelligence (AI) model developed by Anthropic, according to sources familiar with the matter.
The upgrade leads to the departure from Amazon’s traditional reliance on its in-house AI technology. The new version, dubbed “Remarkable Alexa,” will leverage advanced generative AI to handle complex queries and will be offered as a premium service costing between $5 and $10 per month. The classic version of Alexa will remain free.
The shift to Anthropic’s AI was prompted by performance issues in early versions of the revamped Alexa, which struggled with response times. Amazon hopes the new paid service will not only enhance the user experience but also help the company generate meaningful revenue from the Alexa division, which has so far struggled to turn a profit.
Amazon’s spokeswoman confirmed that the company uses a variety of machine learning models, including those from partners, to provide the best possible experience for customers. The release of the Remarkable Alexa is expected to coincide with Amazon’s annual devices and services event in September, where the company’s new devices chief, Panos Panay, will make his first public appearance.
The revamped Alexa aims to offer more advanced features, including personalized shopping advice, news aggregation, and the ability to handle complex requests like drafting emails or ordering food. However, Amazon’s plans could be delayed or modified if the technology fails to meet internal benchmarks.
Despite skepticism among some Amazon employees about whether customers will pay for a service that has traditionally been free, analysts estimate that even a modest adoption rate could generate significant revenue. The launch of the Remarkable Alexa comes amid a broader push by tech giants to improve their AI offerings, spurred by the success of OpenAI’s ChatGPT.
Amazon’s investment in Anthropic, in which it holds a minority stake, is part of a broader strategy to integrate cutting-edge AI into its products. However, the deal is currently under scrutiny by the UK’s antitrust regulator, which is investigating its potential impact on competition
