Amazon.com (AMZN.US) CEO announces new device launching this fall with upgraded AI assistant Alexa+.
Amazon.com Inc.COM-- CEO Andy Jassy said in an interview that the company will launch new devices this fall that are tailored to an upgraded version of its Alexa voice assistant, which is powered by artificial intelligence.
Jassy said on Thursday that the new devices, along with existing hardware that will receive an Alexa+ software update, will go beyond answering trivial questions to help consumers complete tasks such as hiring someone to fix their oven. Jassy unveiled the new Alexa this week at a news conference in New York.
Recent years have seen Alexa overshadowed by a wave of AI chatbots, including OpenAI's pioneering product ChatGPT. Amazon's reboot of its voice assistant is aimed at rekindling consumer interest and monetizing the service through subscriptions, online shopping and other businesses.
"I think it's a sustainable business model," Jassy said of Amazon's refocusing on the Alexa platform.
The comprehensive upgrade of Alexa, Amazon's most important consumer electronics product, has taken longer than the company originally anticipated as engineers worked to integrate AI into software that was not originally designed to generate answers on the fly.
Amazon will launch a new Alexa+ next month and charge users for the first time for the service. Those who want to experience the latest features will have to pay $19.99 a month, while Amazon's $139-a-year Prime members will get the update for free.
In a wide-ranging interview, Jassy also said that a rule proposed during the Biden administration that would limit the export of AI chips to countries such as Israel and the United Arab Emirates could have unintended consequences.
If the proposal isn't changed, "we're basically going to hand this business and relationship over to other countries that can provide these chips," Jassy said, echoing a blog post from Microsoft Corp. President Brad Smith on Thursday that said the policy would limit the export of AI chips to "strategically important markets."
Jassy also said that power restrictions and chip shortages continue to limit the growth of Amazon's cloud computing division. He said the Trump administration was committed to helping solve the problem and understood the constraints it was placing on the economy.
The AmazonAMZN-- CEO also said he was encouraged that the Trump team "cared about the idea of businesses" and understood the challenges facing AI.
Jassy said he had spoken with Trump but did not reveal the details of the conversation.
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