Amazon’s initiative to profit from its Alexa-enabled devices has reportedly fallen short, resulting in substantial financial losses for the company. Internal documents and sources have indicated that Amazon experienced over $25 billion in losses from its Echo, Kindle, and other devices between 2017 and 2021.
While Amazon boasts hundreds of millions of users for its devices, its Echo speakers are primarily utilized for basic functions like setting alarms and using free apps, rather than facilitating purchases on the platform. Former employees expressed concerns about the efficacy of the investments made, with one stating, “We worried we’ve hired 10,000 people and we’ve built a smart timer.”
In response to these challenges, Amazon CEO Andy Jassy is reportedly exploring a solution by introducing a premium version of its voice assistant. However, some engineers working on this paid version are skeptical about its potential success.
An Amazon spokesperson emphasized the company’s commitment to creating value for customers beyond just device sales. They noted that the Devices & Services division has successfully established various profitable ventures and remains optimistic about future growth.
Additionally, although Amazon recently showcased an artificial intelligence-enhanced version of Alexa, former employees have claimed that it is far from completion due to insufficient data and a lack of necessary chip access for the underlying large language model. The company is said to have shifted its focus to developing generative AI for its cloud computing segment, Amazon Web Services.
Amazon has countered these claims, asserting that its former employees are misguided and that the Amazon Artificial General Intelligence team has access to essential technology, including both in-house chips and Nvidia GPUs. The company affirmed its ongoing commitment to developing what it aims to be the best personal assistant in the world.