Amazon’s venture into monetizing its Alexa-enabled devices has reportedly resulted in significant financial losses, amounting to over $25 billion between 2017 and 2021. Despite having hundreds of millions of customers using devices like the Echo and Kindle, many users primarily utilize Alexa for free features such as setting alarms rather than for shopping.
A former senior employee highlighted concerns within the company regarding its workforce and product focus, stating, “We worried we’ve hired 10,000 people and we’ve built a smart timer.”
In an effort to address these issues, Amazon CEO Andy Jassy is exploring a subscription model for Alexa. However, some engineers have expressed doubts about whether this new paid version will yield positive results.
An Amazon spokesperson emphasized the company’s commitment to creating value through its services beyond device sales, asserting that its Devices & Services organization has already established several profitable ventures and is positioned for future success.
On another note, concerns have arisen regarding the readiness of Amazon’s upgraded AI-driven Alexa, showcased in September. Former employees have claimed that the company lacks sufficient data and access to necessary technology to support the new large language model for the assistant. Additionally, Amazon is reportedly shifting its focus towards generative AI developments for its Amazon Web Services cloud division.
In response, Amazon has countered that the claims from former employees are inaccurate and that its Artificial General Intelligence team has the necessary resources, including access to proprietary chips and Nvidia GPUs. The company reiterated its commitment to developing “the world’s best personal assistant.”