Amazon to Launch Subscription Alexa in October

Amazon is set to launch a new, subscription-based version of Alexa in October, primarily powered by Anthropic's Claude AI, after its in-house models failed to meet expectations. The 'Remarkable Alexa' will cost between $5 to $10 per month and will offer advanced generative AI features such as creating customized recipes, stories, and daily news summaries. This revamped Alexa aims to boost user engagement and profitability, addressing the shortcomings of the current free version. Despite the challenges faced in development, Amazon's strategic partnership with Anthropic reflects a broader trend of tech companies outsourcing AI capabilities to specialized firms. The company hopes this upgrade will finally make Alexa a profitable venture by enhancing its conversational abilities and integrating more tightly with Amazon’s shopping ecosystem.