Amazon Debuts New Alexa Voice Assistant with AI Overhaul

 The logo of Amazon's Alexa+ is displayed on a screen during an Amazon Devices launch event in New York City, US, February 26, 2025. (Reuters)
The logo of Amazon's Alexa+ is displayed on a screen during an Amazon Devices launch event in New York City, US, February 26, 2025. (Reuters)
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Amazon Debuts New Alexa Voice Assistant with AI Overhaul

 The logo of Amazon's Alexa+ is displayed on a screen during an Amazon Devices launch event in New York City, US, February 26, 2025. (Reuters)
The logo of Amazon's Alexa+ is displayed on a screen during an Amazon Devices launch event in New York City, US, February 26, 2025. (Reuters)

Amazon unveiled on Wednesday the first major overhaul of its Alexa voice assistant since it was introduced more than a decade ago, embedding it with generative artificial intelligence.

The effort carries significant weight at Amazon, which has plowed billions of dollars into Alexa since its launch in 2014 in the hope of putting the service into a range of devices and ultimately driving sales on its main e-commerce website.

"Alexa knows almost every instrument in your life, your schedule, your smart home, your preferences, the devices you're using, the people you're connected to, the entertainment you love and use many of the apps you use, a lot of the services you need," said Panos Panay, Amazon's head of devices and services, at a launch event in New York.

The new service is called Alexa+, Panay said, echoing the nomenclature of the higher tier of many tech and streaming service offerings.

Panay demonstrated how Alexa can store, through prompts, customer preferences - for example, that a household member is vegetarian and prefers Greek and Italian food but eschews peanut butter. It can be used to make dinner reservations and send timed texts or reminders.

The service can connect to Amazon products such as Ring doorbells to show recordings from its cameras.

Alexa director Mara Segal said Alexa can review documents such as a homeowners association contract so that a resident knows what is allowed, like installing solar panels.

COMPETITION FROM APPLE, GOOGLE

The event marked the unveiling of a secret project known internally as "Banyan" aimed at making Alexa more conversational. Generative AI is a type of artificial intelligence that can learn from data and improve over time.

While Amazon's Alexa was launched three years after Apple's Siri hit the iPhone maker's devices, Alexa helped make the use of voice assistants more mainstream. Still, the lack of solid improvements and overhauls to Alexa over the years meant an erosion in consumer usage of the service, especially in the age of AI.

Apple has already incorporated its suite of AI features, dubbed Apple Intelligence, into its Siri voice assistant, while Google has revamped its voice assistant using its AI chatbot Gemini.

Alexa is voice-controlled software installed in products such as smart speakers that can provide answers to user questions, play music, set timers and serve as a hub for home automation, by linking internet-connected devices so that, for instance, a light can be turned on with just voice prompts.

The new Alexa AI service will be able to respond to multiple prompts in sequence and even act as an "agent" by taking actions for users without their direct involvement. That contrasts with the current iteration which generally handles only a single request at a time.

Executives have debated charging as much as $10 per month for the new service, people have told Reuters, to recoup some of the investment sunk into the money-losing business. Amazon did not immediately address pricing details.

Panay said Alexa+ is live as of Wednesday.

Amazon has said there are some 500 million Alexa-capable devices in consumer hands already, meaning the revamp is at once a huge money-making opportunity for the Seattle retailer - and a big financial risk if it does not live up to expectations.

Daniel Rausch, vice president of Alexa and Echo, acknowledged AI startup Anthropic's contribution to building Alexa+, confirming a Reuters story that Anthropic's Claude was a major underpinning of the service.



Musk’s Social Media Firm X Bought by His AI Company, Valued at $33 Billion

 xAI and X logos are seen in this illustration taken, March 28, 2025. (Reuters)
xAI and X logos are seen in this illustration taken, March 28, 2025. (Reuters)
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Musk’s Social Media Firm X Bought by His AI Company, Valued at $33 Billion

 xAI and X logos are seen in this illustration taken, March 28, 2025. (Reuters)
xAI and X logos are seen in this illustration taken, March 28, 2025. (Reuters)

Elon Musk's xAI has acquired X in a deal that values the social media platform at $33 billion and allows the value of his artificial intelligence firm to be shared with his co-investors in the company formerly known as Twitter.

The deal could also help xAI's ability to train its chatbot known as Grok.

"xAI and X's futures are intertwined," Musk, who also heads automaker Tesla and SpaceX, wrote in a post on X: "Today, we officially take the step to combine the data, models, compute, distribution and talent."

He said the combination values "xAI at $80 billion and X at $33 billion ($45B less $12B debt)".

Representatives for X and xAI did not immediately respond to requests for comment. Much of the deal's specifics remain unclear, such as how X's leaders would be integrated in the new firm or whether there would be regulatory scrutiny.

Musk, the world's wealthiest man, is also a close ally of US President Donald Trump and heads the Department of Government Efficiency.

D.A. Davidson analyst Gil Luria said the price tag for X of $45 billion when debt was included was not a coincidence. "It is $1 billion higher than the take-private transaction for Twitter in 2022."

An investor in xAI who declined to be identified said they were not surprised by the deal, viewing it as Musk consolidating his leadership and management at his own companies.

Musk did not ask investors for approval but told them that the two companies had been collaborating closely and the deal would drive deeper integration with Grok, the investor said.

OPENAI RIVALRY

Musk's xAI startup was launched less than two years ago and recently raised $10 billion in a funding round that valued the company at $75 billion, according to a media report.

It competes with the likes of Microsoft-backed OpenAI as well as with Chinese startup DeepSeek.

In February, Musk, 53, made a $97.4 billion bid with a consortium for OpenAI, which was rejected and he has sued to prevent the ChatGPT maker from converting from a non-profit to a for-profit business. A judge this month denied Musk's request for a preliminary injunction that would prevent the changeover.

As competition in AI intensifies, xAI has been ramping up its data center capacity to train more advanced models, and its supercomputer cluster in Memphis, Tennessee, called "Colossus," is touted as the largest in the world.

xAI introduced Grok-3, the latest iteration of its chatbot, in February.

The X platform could serve to further distribute xAI products, while also providing a real-time feed of users' musings, screenshots and other data.

After buying Twitter, Musk gutted the company's workforce, prompting advertisers to flee the platform and a rapid decline in revenue. Recently, brands have been returning to X as Musk's influence in the Trump administration grows.

The seven banks that extended $13 billion in loans to Musk to buy X kept the debt on their books for two years until they were able to sell it all at once last month, according to a source familiar with the transactions.

This was made possible after a surge in investor interest for exposure to AI companies along with X's improved operating performance over the previous two quarters, among other factors, according to two people familiar with the matter.

After the merger, investors who bought the debt from the banks will profit, said Espen Robak, founder of Pluris Valuation Advisors, which specializes in illiquid assets. "For sure the debt is worth more now, if not fully paid off."

Separately, a US judge on Friday rejected a bid by Musk to dismiss a lawsuit claiming he had defrauded former Twitter shareholders by waiting too long to disclose his initial investment in the company.