Amazon to Launch Subscription-Based Alexa Powered by Anthropic's AI Technology

Amazon is preparing to introduce a revamped version of its Alexa voice assistant, which will primarily leverage Anthropic's Claude AI model, according to a report from Reuters. The forthcoming version, expected to be launched this year under the codename "Remarkable Alexa," marks a shift away from Amazon’s in-house artificial intelligence (AI) models after they encountered difficulties with language processing and responding to user prompts.

Amazon's decision to utilize Anthropic's technology follows a $4 billion investment made by the company last year, which included securing a minority stake in Anthropic. This investment, currently under scrutiny by UK competition regulators, granted Amazon early access to Anthropic's AI capabilities for integration into its products.

The development of Remarkable Alexa has faced significant challenges since its announcement in September of the previous year. Reports from Fortune highlight the technical and bureaucratic hurdles encountered by the team, a sentiment echoed by Mihail Eric, a former machine learning scientist at Amazon's Alexa division. Despite these obstacles, the Claude-powered Alexa is reportedly outperforming earlier versions that relied on Amazon's proprietary AI models.

As competition in the voice assistant market intensifies, Amazon aims to position the new Alexa as a frontrunner against rivals such as OpenAI's Advanced Voice Mode for ChatGPT, Google Gemini's voice chat mode, and Apple's upcoming Siri update, powered by Apple Intelligence.

Amazon has stated that it employs a variety of technologies to power Alexa, starting with models developed in-house. However, the company acknowledged its use of third-party models, including those from Anthropic, to enhance the user experience. "When it comes to machine learning models, we start with those built by Amazon, but we have used, and will continue to use, a variety of different models — including (Amazon AI model) Titan and future Amazon models, as well as those from partners — to build the best experience for customers," Amazon said in a statement to Reuters.

Remarkable Alexa, anticipated to launch in mid-October, is expected to feature AI-generated daily news summaries, a child-focused chatbot, and advanced conversational shopping tools. According to sources, the new voice assistant will likely be offered as a subscription service, with pricing expected to range from $5 to $10 per month. The current version of Alexa, referred to as "Classic Alexa," is expected to remain available as a free service.

Amazon is expected to provide a demo of Remarkable Alexa at its annual devices and services event, typically held in September.