Amazon Could Charge Up to $10/Month for Alexa

Apple competitor Amazon is working on a revamp of its Alexa assistant, and the new version could cost up to $10 per month, according to a report from Reuters. The upcoming version of Alexa will support conversational generative AI, and Amazon is planning for two tiers of service.

There will be a free tier and a second, premium tier that is priced at $5 at a minimum, with Amazon considering price points ranging from $5 to $10. Amazon does not plan to include the premium Alexa tier with its $139 per year Prime subscription.

Amazon has not made significant updates to Alexa in the last decade, and it has fallen behind other AI products that have started to adopt large language models. Alexa is free and built into Amazon devices, so Amazon does not make money directly from it as of now. Some employees that spoke to Reuters said the revamp is a "desperate attempt" to revitalize Alexa, and Amazon executives have suggested it is imperative Alexa demonstrate it can generate "meaningful" sales.

The updated version of Alexa, which Amazon calls "Remarkable Alexa" internally, is expected to be able to do things like craft emails, give shopping advice, and order delivery from Uber Eats. Amazon also wants to improve the way that Alexa controls smart home products, with Alexa able to learn how to automate routines.

Amazon is aiming to have the updated version of Alexa finished by August, which would see it launch later this year. Apple is working on a similarly updated version of Siri that also incorporates large language models, though many of the new ‌Siri‌ functions won't be coming until 2025.