Amazon Considers $5-$10 Monthly Fee for Revamped AI-Powered Alexa

Jun 21, 2024, 10:10 AM

Amazon is considering a $5 to $10 monthly fee for a revamped version of its unprofitable Alexa service, which will include generative AI capabilities. The company plans to introduce two pricing tiers: a free version and a superior version with advanced features such as composing emails. The initiative, codenamed 'Banyan,' aims to transform the currently unprofitable Alexa service into a revenue-generating platform. The new AI-powered Alexa is expected to launch as soon as August. Amazon has sold over 500 million Alexa-enabled devices, and the new generative AI could significantly boost the company's revenue. Sources, including Reuters, indicate that this move is part of Amazon's broader strategy to leverage AI technology.