Latest news with #Devices&Services
Time of India
6 days ago
- Business
- Time of India
After Prime Video, this Amazon service to get ads, confirms CEO Andy Jassy
Amazon CEO Andy Jassy confirmed during the company's second-quarter earnings call that advertisements will be integrated into Alexa+ conversations, marking the next phase of Amazon's ad expansion strategy after introducing ads to Prime Video. The generative AI-powered voice assistant could see ads delivered during multi-turn conversations as "a lever to drive revenue," Jassy told investors Thursday. Currently, Alexa+ costs $19.99 monthly for non-Prime members while remaining free for Prime subscribers who pay $14.99 monthly. Jassy hinted at potential subscription tiers beyond current offerings, suggesting an ad-free premium option similar to Prime Video's structure. Amazon's AI assistant struggles with profitability despite millions of users The move addresses Amazon's Devices & Services division's financial challenges, which reportedly lost $25 billion between 2017 and 2021 despite having 500 million Alexa-enabled devices. Amazon has invested heavily in AI development, with capital expenditures rising 90% to $31.4 billion in Q2 2025, primarily for AI chips and data centers. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like How Much Does It Cost to Rent a Private Jet - The Prices May Surprise You! Private Jet I Search Ads Learn More Undo Traditional Alexa already features limited advertising through visual ads on Echo Show displays and occasional audio promotions between songs. However, Jassy's vision involves AI-generated ads seamlessly integrated into natural conversations, representing uncharted territory for voice assistants. Tech giants embrace AI advertising as new revenue stream Amazon joins other tech companies exploring AI-powered advertising. Google has begun testing ads within AI search responses, while OpenAI CEO Sam Altman expressed openness to "tasteful" advertising in ChatGPT. Microsoft is actively courting advertisers for its Copilot platform. The advertising integration raises privacy concerns, as users typically share more personal information during conversational AI interactions compared to traditional assistants. Early Alexa+ reviews have been mixed, with Amazon reportedly struggling to deliver promised features despite the gradual rollout to millions of customers. Amazon's advertising revenue grew 22% year-over-year in Q2, highlighting the business model's importance as the company seeks to monetize its substantial AI investments. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Geek Wire
15-05-2025
- Business
- Geek Wire
Amazon lays off 100 in Devices & Services group amid ongoing tech industry cuts
In-depth Amazon coverage from the tech giant's hometown, including e-commerce, AWS, Amazon Prime, Alexa, logistics, devices, and more. (GeekWire File Photo) Amazon is cutting about 100 jobs in its Devices & Services division, the part of the company that includes its Alexa voice assistant, Echo smart speakers, Zoox robo-taxis and Project Kuiper satellite internet venture. It's part of a broader industry trend of reducing headcount in the name of efficiency, although the size is much smaller than recent cuts at some of Amazon's peers. The company said it continues to hire within the organization and currently has hundreds of open roles it's looking to fill. 'As part of our ongoing work to make our teams and programs operate more efficiently, and to better align with our product roadmap, we've made the difficult decision to eliminate a small number of roles,' an Amazon spokesperson said. 'We don't make these decisions lightly, and we're committed to supporting affected employees through their transitions.' No further information was available about the types of roles impacted by the cuts, or the specific teams involved inside the Devices & Services organization. The changes come as the company rolls out Alexa+, the new version of its voice assistant that uses generative AI for more natural interactions with users. CNBC first reported the news. It's the third known round of small-scale layoffs at Amazon this year. The prior two: January 16, 2025 : Amazon laid off approximately 200 employees in its North America Stores division, saying the structure would 'better enable us to deliver on our priorities.' : Amazon laid off approximately 200 employees in its North America Stores division, saying the structure would 'better enable us to deliver on our priorities.' January 29, 2025: An undisclosed number of employees in Amazon's Communications and Sustainability organizations were laid off, 'to help us move faster, increase ownership, strengthen our culture, and bring teams closer to customers.' The broader trend of tech layoffs comes as AI reshapes the industry. Companies including Microsoft, Match Group, Meta and Google are among those that have made recent layoffs, each citing a quest for efficiencies.
