Meanwhile, Amazon is discontinuing free home security features of Alexa Guard, requiring users to sign up for the new Alexa Emergency Assist at $5.99 a month or $59 a year. Amazon will also start showing ads on Prime Video next year unless users pay an extra $2.99 per month. These moves come as Amazon continues to seek ways to monetize Alexa, which has been experiencing uncertainty and is projected to lose Amazon $10 billion in 2022.
Key takeaways:
- Amazon is considering charging a subscription fee for Alexa's AI features in the future, according to Dave Limp, SVP of devices and services at Amazon.
- Amazon recently locked some of Alexa's Guard security features behind a paywall and discontinued Alexa Guard, replacing it with Alexa Emergency Assist, which costs $5.99 a month or $59 a year.
- Amazon is investing up to $4 billion in Anthropic to build out large language models, indicating a focus on developing Alexa's generative AI capabilities.
- Dave Limp, who is leaving Amazon at the end of the year, emphasized the substantial costs associated with turning Alexa into a generative AI chatbot, hinting at the reason behind the potential subscription fee.