Amazon to Launch New AI-Powered Alexa Using Anthropic's Claude

[MacRumors]

Amazon is set to release a revamped version of its Alexa voice assistant this October that will be powered by AI models from Anthropic's Claude, rather than Amazon's in-house AI technology, reports Reuters.

Amazon's Echo device with Alexa​

The decision to use Claude's AI models comes after Amazon's internal software reportedly struggled with performance issues during initial testing. Sources who spoke to Reuters claim that early versions using Amazon's own AI had difficulty responding promptly, sometimes taking up to 6-7 seconds to acknowledge and reply to prompts.

This new AI-enhanced "Remarkable" Alexa is expected to offer more advanced capabilities compared to the current version. Users will reportedly be able to engage in more complex, context-aware conversations with the assistant.

Some potential features include providing shopping advice for specific scenarios like vacation clothing recommendations, aggregating news stories, executing multi-step tasks from a single prompt such as ordering food or drafting emails, and enhanced home automation with improved ability to remember and apply user preferences.

Amazon plans to offer this upgraded "Remarkable" Alexa as a paid subscription service, with pricing anticipated to be between $5 to $10 per month. In other words, it won't be included in existing Prime memberships. The existing "Classic" Alexa service will remain available for free.

The move to partner with Anthropic for AI technology contrasts with Amazon's typical strategy of relying on in-house developments, but similar partnerships such as Microsoft and Apple's collaborations with OpenAI for ChatGPT integration indicate a broader shift in the tech industry.

Amazon has invested $4 billion in Anthropic, which may have influenced this decision, but the full details of the agreement between the two companies regarding the use of Claude in Alexa have not been disclosed.

Industry analysts estimate that there are approximately 100 million active Alexa users. If 10% of these users opt for the paid version, it could potentially generate at least $600 million in annual revenue for Amazon, assuming the lower end of the expected price range.

The launch of this new Alexa comes at a critical time for Amazon's voice assistant division. Despite Alexa's widespread adoption, with Amazon claiming 500 million Alexa-enabled devices sold, it has struggled to generate significant revenue. Amazon's leadership has reportedly emphasized that 2024 is a crucial year for Alexa to demonstrate its ability to drive meaningful sales.

While Amazon has confirmed its use of various AI models, including its own Titan model and those from partners, it has not specifically commented on the use of Claude for the new Alexa. The official unveiling of the new AI-powered Alexa is expected to take place at Amazon's annual devices and services event, typically held in September.

Article Link: Amazon to Launch New AI-Powered Alexa Using Anthropic's Claude

 

[contacos]

so they gonna charge for something based on another companies AI work?

Big NOPE

 

[abatabia]

Way way way too many subscriptions.

 

[kiranmk2]

It will be interesting to see what the capabilities of Remarkable Alexa are. AI on phones and computers is able to read documents and see things via a camera. On an Alexa device it's reliant purely on voice.

Also wondering if this will also be offered on Non-Amazon Alexa devices (e.g. Sonos).

 

[klasma]

If 10% of these users opt for the paid version, it could potentially generate at least $600 million in annual revenue for Amazon, assuming the lower end of the expected price range.

That's a big "if" and seems rather unlikely.

 

[McWetty]

I don’t see another subscription like this succeeding (to the decree they need it to). They would find more success raising the price of prime $10/yr and making remarkable prime only.

Same would be true for Apple charging for a better Siri by rolling it into iCloud One. People are already burdened by too many subscriptions; an AI bot sub isn’t going to fly far.

 

[retrocool]

It would have to do some very useful things, and do them quite often, to be worth that money even to an affluent user. My prediction is that it won't be that useful and will get far fewer subscribers than it needs.

 

[StuBeck]

so they gonna charge for something based on another companies AI work?

Big NOPE

Its a licensing deal, on a company they've heavily invested in already. Its not that dissimilar to other products you use every day.

 

[emmab2006]

Anyone else fed up of AI Yet ?... its not even AI its machine learning. what we consider AI does not exist yet... ugh... enough of this gimmicky crap.

 

[Remy149]

I barely use Alexa now I’ve muted her in my Sonos devices because of accidental triggers and my two echos are always trying to sell me stuff. I still have older 2nd and 3rd gen echo models

 

[honglong1976]

Old AI model - Alexa turn on light
New AI model - Alexa turn on light

Seems pointless to me.

 

[vegetassj4]

So many subscriptions. I suggested you use my services to manage your subscriptions, it’s only 19.99 a month.

 

[page3]

If I was to pay my teenager £10/month would I get more detailed responses than the basic ones I get now?

 

[Pezimak]

Sounds good. And not following the Chat GPT route either. Shame about the subscription though...

But the main issue with Amazon is the features it region locks, for instance the ability to run voice command locally, so you can turn lights on still if your internet goes, is only available in a very few locations and not in the UK...!! Meanwhile all of Apples features are available in the UK, as much as they are.

So can we expect even when paying for an AI service in Amazon they'll still region lock services?

 

[Pezimak]

Old AI model - Alexa turn on light
New AI model - Alexa turn on light

Seems pointless to me.

Probably be more like:

Old AI model - Alexa turn on the light - Ok
New AI model - Alexa turn on the light - Ok, by the way your bulbs lifespan has only 10 hours left, would you like me to order some more at £4 each?

 

[Ramchi]

May be it is useful if you have a connected home with lots of IOT devices which you can operate remotely. But not sure what the new AI can do that Alexa is already not doing, yet you want’s to pay for it?

 

[WarmWinterHat]

May be it is useful if you have a connected home with lots of IOT devices which you can operate remotely. But not sure what the new AI can do that Alexa is already not doing, yet you want’s to pay for it?

I have no clue either. Our house used to be decked out with Alexas and Amazon smart plugs, and all we ever did was set timers, turn lights on and off and play music. Not worth paying $1/month.

At some point, Amazon decided to start adding, at the end, "did you know, I can also do xxxxx".... DON'T CARE. Finally got fed up with and ripped it all out and put in Marketplace. We are smarthome free, now.

 

[wlossw]

the only possibly useful thing would be if the ai model was better able to use your alexa skills without the magic incantation, for example i have a netatmo weather station. i ask alexa the outside temperature, crickets. i have to say alexa ask netatmo the outside temperature. they also gimped lists so i have to ask anylist to add items
instead of just allowing integration, wouldnt suprise me if this is why.

 

[HobeSoundDarryl]

If I was to pay my teenager £10/month would I get more detailed responses than the basic ones I get now?

Only by text… and prob only by emoji text… and only if you get their friends to relay at least some of your questions and comments from their IDs. 😉

 

[Lioness~]

The day AI can read my thoughts - Instead of me being their parent.
I might begin feeling some exitements.

 

[DotCom2]

NO MORE SUBSCRIPTIONS FOR ME!

 

[sirdir]

A new subscription for something most people won’t use for free, that will fly…

 

[Stromos]

As someone who actually works for a rather large retail company in the tech space I honestly don’t get it.

The reality of AI is it’s extremely expensive. We have seen tons of demos and POCs leveraging AI and what it can do. Really amazing stuff and so on however we use none of it. It all looks great until you see how much it would cost to utilize then it’s an instant nope. Nothing we have looked at in AI provides enough value to make the investment at this point.

That all being said, it makes even less sense for end users. If you have a very specific case then maybe but the average joe just isn’t going to pay monthly for potential. If you’re in school and you write tons of papers (actually write and not cheat) and you want to leverage AI for images, proofreading, and the like maybe it’s worth it for you.

As others have said Alexa turn on *this* isn’t going to change much with AI. Once again the value add doesn’t justify the cost.

That all being said, super worried this will further erode work to keep the current Alexa functioning properly. I already sometimes have to say a command 3-4 times to get a desired effect in the past year or so. System used to work on the first try every time. Always wonder if work to add more is breaking the basics more and more.

 

[pumpkinwhite]

Even expecting 10% of Alexa users to pay for this seems like a stretch. There is no denying it’ll be impressive tech, but like others have said, most of us are not even using Alexa to its current potential. Even if this were given to me for free, I cannot imagine asking it anything that couldn’t be served well enough by the current Alexa. Also, I agree with the sentiment that such a value-add should be baked into current subscription services, rather than an independent one. Make it so non-prime users get the basic Alexa, and Prime users get the AI powered one. That might drive more Prime subscriptions. Prime subscription prices are going to go up again at some point anyway; factor in this feature into the new price.

 

[ifxf]

They are following the google model in quickly EOL many of their products.