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Far from the expected revenue, the Alexa assistant is a money pit for Amazon

Shop Amazon, order an Uber, order a pizza… with voice. When the group, then led by Jeff Bezos, developed the intelligent voice assistant Alexa, Amazon imagined that this technology would quickly become a major source of income and a new way of doing business. About ten years later, the reality is far from meeting these expectations.

According to a Business Insider survey, Alexa is a money pit. The division to which this technology is attached, which also includes Kindle readers or the Fire TV box, lost $3 billion in the first quarter of 2022 and should have a deficit of $10 billion for the full year. This is the worst performance among Amazon’s various divisions. Unsurprisingly, the massive 10,000 job cuts announced last week will mostly affect teams working on connected devices, including Alexa and its Echo speaker.

This…

Source: Le Figaro

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