Amazon’s attempt to profit from its Alexa-enabled devices has not yielded positive results, leading to reported losses of over $25 billion between 2017 and 2021, as indicated by internal documents and sources familiar with the situation, according to the Wall Street Journal. Although Amazon boasts hundreds of millions of customers using its devices, the primary functions of its Alexa-enabled Echo speakers appear to revolve around setting alarms and employing free applications, with minimal engagement in shopping activities on Amazon.
Concerns were raised by a former senior employee, who remarked, “We worried we’ve hired 10,000 people and we’ve built a smart timer.”
In response to these issues, Amazon CEO Andy Jassy is actively seeking solutions, including the introduction of a paid tier for its voice assistant. However, there is skepticism among some engineers about whether this initiative will significantly change the current situation.
An Amazon spokesperson emphasized the company’s focus on the value generated from customer interactions with its services, rather than solely from device sales, stating, “Our Devices & Services organization has established numerous profitable businesses for Amazon and is well-positioned to continue doing so going forward.”
In addition, Amazon’s new AI-powered version of Alexa, showcased in September, reportedly remains in developmental limbo. Former employees have commented that the company lacks sufficient data and the necessary chip access to effectively implement the large language model that supports this new iteration of its digital assistant. Furthermore, Amazon has shifted its priorities to concentrate on generative AI for its cloud computing division, Amazon Web Services.
In rebuttal, Amazon asserted that its former employees are misinformed regarding the current status of its Alexa AI initiatives, claiming that the Amazon Artificial General Intelligence team has access to both proprietary Trainium chips and Nvidia GPUs. The company reiterated its commitment to its goal of creating “the world’s best personal assistant.”