Amazon's AI Business Outpaces AWS as Alexa's Upgrade Faces Delays

Amazon's AI sector sees rapid growth, but technical challenges push Alexa's next-gen release to 2025.

Amazon's AI business is expanding at a faster rate than AWS, with triple-digit growth year-over-year.
CEO Andy Jassy highlighted the company's strong partnership with Nvidia and the development of custom AI chips like AWS Trainium.
Amazon plans significant capital expenditure in 2024, primarily driven by AI-computing infrastructure demands.
The next-generation Alexa, featuring advanced AI capabilities, has been delayed due to technical issues and is now expected in 2025.
Despite setbacks, Amazon is re-architecting Alexa with new foundational models, aiming for improved action-taking capabilities.