What Investors Need to Know — TradingView News

May 23, 2024

33 1 minute read

Amazon.com Inc AMZN is upgrading its decade-old Alexa voice assistant with generative artificial intelligence (AI).

The Seattle-based company plans to charge a monthly subscription fee to offset the technology’s cost.

Amazon will launch a more conversational version of Alexa later this year, potentially positioning it to better compete with new generative AI-powered chatbots from companies including Alphabet Inc GOOG GOOGL Google, and OpenAI, according to CNBC.

Amazon will not include the subscription for Alexa in its $139 per year Prime offering.

Also Read: Amazon and Generative AI – What’s Going On?

Alexa’s voice-driven capabilities need an overhaul compared to recent AI advancements.

Last week, Microsoft Corp MSFT backed OpenAI announced GPT-4, which offers two-way conversations that can translate in real-time. Google has introduced a feature similar to its Gemini AI.

Some experts view these developments threatening Alexa and Apple Inc’s AAPL Siri.

CEO Andy Jassy has reportedly been unimpressed with Alexa’s current capabilities.

Apple will likely introduce a more conversational Siri at its annual developers conference in June.

While Amazon offers multiple AI models on AWS, it lacks a leading large language model to rival OpenAI, Google, or Meta Platforms Inc META.

Amazon will use its large language model, Titan, in the Alexa upgrade.

Prior reports indicated Amazon discontinuing Alexa Developer Rewards and a support program offering free Amazon Web Services credits to Alexa developers.

The company had also downsized its workforce at the Alexa unit to focus on its generative AI ambitions.

Amazon stock gained over 59% in the last 12 months. Investors can gain exposure to the stock via SPDR Select Sector Fund – Consumer Discretionary XLY and Vanguard Consumer Discretion ETF VCR.