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Amazon wants to upgrade “Alexa” with Anthropic AI

Amazon's "Alexa" is to become smarter - and subject to a fee.

(Bild: Amazon)

According to insiders, Amazon is relying on artificial intelligence from Anthropic for the planned overhaul of its digital assistant "Alexa". The online retailer has opted for the OpenAI rival's AI "Claude" because an in-house development was not technically convincing.

Several people familiar with the matter told the news agency Reuters on Friday. "Amazon uses many different technologies to operate Alexa," a spokesperson for the company replied when asked. This includes the self-developed AI "Titan" as well as programs from other providers.

Anthropic, in which Amazon holds a minority stake worth up to four billion dollars (around 3.6 billion euros), did not wish to comment on this topic. It remained unclear whether the online retailer would have to pay further money to Anthropic for the use of "Claude".

Amazon is not the only technology company that relies on technologies from other providers for AI. The iPhone provider Apple, for example, relies in part on ChatGPT from OpenAI for the new version of its digital assistant "Siri". The software company Microsoft uses the same technology for its 'Copilot' in various products.

Decision year for "Alexa"
For "Alexa", 2024 is considered a decisive year. The loss-making digital assistant, which according to Amazon employees seems old-fashioned and technologically backward compared to ChatGPT, must prove that it can generate significant sales.

The "Remarkable" version, which has been upgraded with "Claude", will therefore perform complex tasks for a monthly fee of five to ten dollars. For example, it could advise users on the purchase of products or make suggestions for their next vacation trip. The "Classic" version, which can play music or set an alarm clock, remains free of charge.

Profitable business
According to analyst Justin Post from Bank of America, there are currently around 100 million active "Alexa" users. If around ten percent of them use the subscription and the monthly fee is at the lower end of the targeted range, this would mean additional revenue of at least 600 million dollars a year.

Launch expected in October
The market launch of the revised "Alexa" is expected in October. The new version will probably be presented at the annual product presentation in September. However, Amazon has not yet named a date for this event. The insiders emphasized that technical problems could delay the debut of "Remarkable Alexa".