Amazon is going to upgrade Alexa with Claude

According to a recent report from Reuters, Amazon is about to roll out a major upgrade for their popular voice assistant Alexa. The new version, scheduled for October 2024, will largely run on Anthropic's Claude's AI models instead of Amazon's own AI. This choice does not come out of the blue; Amazon's in-house AI models failed to meet high expectations, so the company decided to go in a different direction.

Two versions of Alexa: Remarkable and Classic

With the upcoming upgrade, Alexa comes in two variants. The "Remarkable" version will cost between $5 and $10 per month. This version offers advanced features such as making longer calls, handling more complex requests and enhanced home automation. It targets users who want to get more out of their smart home experience and voice assistant. For users who prefer not to incur additional costs, the "Classic" version of Alexa remains available for free, but without the new premium features.

Can Amazon finally turn a profit with Alexa?

One of Amazon's biggest challenges is generating revenue with Alexa. Despite wide adoption of the voice assistant, the company has yet to capitalize on it. The introduction of a paid version of Alexa appears to be an attempt to address this problem. Still, the question arises as to whether users are willing to pay for a service that has been free for years. While the new features could certainly be valuable, Amazon will have to demonstrate that this upgrade is worth the subscription fee.

A logical choice for Claude

The fact that Amazon chose Anthropic's Claude instead of their own AI models says a lot about the direction the company is taking. Amazon already invested $4 billion in Anthropic in 2023, making this collaboration not entirely unexpected. Amazon's choice seems like a strategic move, especially now that Apple has chosen OpenAI to give Siri a much-needed upgrade. Amazon's move to Claude could even foreshadow a possible acquisition of Anthropic by Amazon, which would further strengthen their position in the AI market.

A new AI battle between the tech giants?

What this move shows above all is that major tech companies are increasingly focusing on improving their voice assistants using the latest AI technologies. Whereas Apple and OpenAI are working together to revive Siri, Amazon is opting for a similar strategy with Claude. It's an interesting development, especially since Amazon was once one of the first to launch a voice assistant, but has since struggled to keep up with the AI race.

However, Alexa's upgrade could well mean that Amazon is repositioning itself as a major player in this growing market. The question now is whether users will be willing to pay for these new features and how competitors such as Apple and Google will respond.

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