February 24, 2025 - 10:27
A groundbreaking update to Amazon's Alexa AI is expected to be revealed at an upcoming event in New York City. Sources indicate that the tech giant will introduce a new generative AI assistant named Rufus. This innovative tool may come with a modest subscription fee, which could provide Amazon with a significant new revenue stream, especially considering the company boasts over 200 million Prime subscribers globally.
The event aims to highlight Amazon's substantial investments over the past two years in enhancing Alexa's capabilities, particularly in light of advancements in generative AI technology. If Rufus is successfully unveiled, it could position Amazon ahead of competitors like Apple, which has faced challenges in upgrading its own voice assistant, Siri.
Despite the excitement surrounding the event, Amazon's stock performance has been lackluster, with shares down 1.3% year to date. In contrast, the S&P 500 has seen a 2% increase, and fellow tech giant Nvidia has also experienced modest gains. Investors will be keenly watching to see if this new development will invigorate Amazon's market position.
