Amazon Might Use Claude AI for Alexa Instead of Its Own Technology

Key Takeaways

Amazon’s new Alexa might use Anthropic’s Claude AI instead of Amazon’s own generative AI.

The new service could launch in October with a subscription cost between $5 to $10 per month.

Amazon’s in-house AI model reportedly struggled with slow response times.

Amazon has been working on an upgraded version of Alexa that is expected to use Anthropic’s Claude AI, according to sources. Initially, Amazon planned to use its own generative AI for this new Alexa version. However, insiders reported that Amazon’s AI took too long—about six or seven seconds—to recognize and respond to voice commands, prompting the company to consider Claude AI instead.

This new version, possibly called “Remarkable,” is rumored to launch in October, with a subscription fee ranging from $5 to $10 per month. The current version of Alexa, which uses Amazon’s internal AI, would remain available for free.

An Amazon spokesperson mentioned that Alexa uses a mix of technologies, including both Amazon’s own machine learning models and those from external partners. However, the switch to Claude AI highlights the challenges Amazon faced with its in-house technology.

Anthropic, the company behind Claude AI, declined to comment on the matter. Insiders also noted that the release of “Remarkable” could be delayed, depending on various factors.

Amazon previewed a generative AI version of Alexa in September 2023, promising more natural interactions, advanced voice-controlled routines, and context-aware conversations. However, progress since then has been slow. Sources mentioned that 2024 might be a crucial year for Alexa, especially since the division has not been profitable as Amazon had hoped.

The potential use of Claude AI is not entirely unexpected, considering Amazon’s significant investment in Anthropic, including a $4 billion commitment last year. But it’s uncertain if this move will pay off, as some Amazon employees doubt customers will be willing to pay at least $60 a year just to use the Claude-powered Alexa. Especially when competitors like Apple Intelligence and standard versions of Google’s Gemini are often available for free.

Additionally, regulatory issues could pose challenges. The UK’s Competition and Markets Authority (CMA) is investigating Amazon’s investment in Anthropic as part of a broader concern that big tech companies might be bypassing antitrust laws through large investments in other companies. If regulators find issues, they could demand changes that might delay or even block the Claude-based Alexa upgrade.