Alexa's AI Transformation

Amazon's iconic virtual assistant Alexa is due for a change, and she will undergo one with the help of the powerful large language model (LLM) built by artificial intelligence (AI) developer Anthropic.

According to a report from Reuters on Aug. 30, Alexa will receive an update this October and will be primarily powered by Anthropic's Claude model rather than its own AI.

Alexa Upgrades

Five people familiar with the matter told Reuters that this upgrade will cost money. Amazon will charge users $5 to $10 each month for access to its updated, "remarkable" version of Alexa while keeping the "classic" version free.

Amazon initially planned to update Alexa using AI software it developed in-house. However, sources said that output time took too long or caused Alexa to struggle for answers.

A spokeswoman for Amazon said, "When it comes to machine learning models, we start with those built by Amazon, but we have used and will continue to use, a variety of different models - including (Amazon AI model) Titan and future Amazon models, as well as those from partners - to build the best experience for customers."

The upgraded, paid version of Alexa could hold conversations with users and build on the questions and answers it provides. It would allow the virtual assistant to complete advanced requests from a single prompt.

Amazon, Anthropic, and AI

In March 2024, Amazon fulfilled its $4-billion investment commitment to Anthropic, solidifying its minority ownership stake in the company and its use of AWS as its cloud service provider.

However, other big tech companies can invest in anthropology. Google's parent company, Alphabet, has a $2 billion stake in the AI developer. Anthropic has also attracted talent from its rival AI developer OpenAI, notably with co-founder John Schulman leaving to join Anthropic.

All the inter-mingling within Big Tech has been a cause for concern among regulators worldwide. In August, the UK's Competition and Markets Authority (CMA) launched a probe into Amazon's UK division over its multibillion-dollar investment into Anthropic, questioning the line between acquisition and investment.

Both Microsoft and OpenAI face similar scrutiny in Europe and the UK. Nonetheless, Anthropic's CEO Dario Amodei discussed AI's future on the Econ 102 podcast, speculating that AI's future will look more like a "corporate takeover" rather than a doomed robot uprising.