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Amazon's most powerful new Alexa features being powered by Anthropic's AI, sources say

Feb 28, 2025 - cnbc.com
Amazon has unveiled a major overhaul of its Alexa devices, introducing a new service called "Alexa+" that will cost $19.99 a month, or be free for Amazon Prime members. The revamped Alexa, powered by Anthropic's Claude large language model, can now perform complex tasks like making dinner reservations and booking rides, which were not possible with older versions. This upgrade comes as Amazon seeks to regain its competitive edge in the AI space, which has been challenged by the rise of generative AI chatbots like OpenAI's ChatGPT. Amazon CEO Andy Jassy described the update as "rearchitecting" Alexa's brain, and the company is leveraging its $8 billion investment in Anthropic to enhance Alexa's capabilities.

Amazon's collaboration with Anthropic extends beyond Alexa, with Claude also contributing to product search and advertising within the company. While Amazon's own AI models are still in use for simpler tasks, Claude handles more complex queries. The partnership between Amazon and Anthropic is evolving, as their initial agreement, which allowed Amazon to use Anthropic's capacity for free for 18 months, has expired. The companies are currently renegotiating their terms. Panos Panay, Amazon's senior vice president of devices and services, praised Anthropic as an "awesome" partner, emphasizing the importance of selecting the right AI model for each task through Amazon's Bedrock service.

Key takeaways:

  • Amazon's new Alexa+ service, powered by Anthropic's Claude AI model, will cost $19.99 a month or be free for Amazon Prime members.
  • Anthropic's Claude model handles complex queries for Alexa+, while Amazon's own AI models manage simpler tasks.
  • Amazon's investment in Anthropic has expanded beyond Alexa, influencing product search and advertising.
  • Amazon is renegotiating its agreement with Anthropic after the initial investment deal expired.
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