Amazon’s efforts to profit from its Alexa-enabled devices have not yielded the desired results, leading to reported losses of over $25 billion between 2017 and 2021, according to the Wall Street Journal. Internal documents and sources familiar with the situation indicate that while Amazon boasts hundreds of millions of customers for its devices, the Echo speakers are primarily utilized for basic functions like setting alarms rather than for shopping.
A former senior employee expressed concerns about the company’s direction, stating, “We worried we’ve hired 10,000 people and we’ve built a smart timer.”
Now, CEO Andy Jassy is exploring solutions, including the launch of a paid version of the voice assistant. However, some engineers involved in this project reportedly doubt its potential impact.
In a statement, an Amazon spokesperson emphasized the company’s commitment to generating value for customers using its services, beyond merely selling devices. They pointed out that the Devices & Services organization has successfully established various profitable ventures.
Meanwhile, Amazon’s much-anticipated AI-enhanced version of Alexa, showcased in September, is reportedly still far from completion. Former employees claim the company lacks sufficient data and access to the necessary technology to support the large language model behind the new assistant. Additionally, Amazon has shifted its focus to developing generative AI for its cloud computing division, Amazon Web Services.
In response to these criticisms, Amazon contended that the assessments from former employees are inaccurate and that the Artificial General Intelligence team has access to both in-house Trainium chips and Nvidia GPUs. The company remains committed to its goal of creating the world’s best personal assistant.