• Send Us A Tip
  • Calling all Tech Writers
  • Advertise
Wednesday, June 18, 2025
  • Login
  • Register
TechStory
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
TechStory
No Result
View All Result
Home Trending

Amazon Contemplates Potential Fees for Alexa Usage Due to Rising AI Costs, Says Departing Executive

by Sneha Singh
September 26, 2023
in Trending
Reading Time: 3 mins read
0
Amazon
TwitterWhatsappLinkedin

During a recent interview with Bloomberg, Dave Limp, a departing executive at Amazon, discussed the potential for Amazon to introduce a subscription fee for using Alexa. Limp underscored the considerable operational costs associated with training and utilizing advanced artificial intelligence models to power the new AI capabilities of the smart speaker as the primary rationale behind this potential shift. He explained, “When you use these AI models extensively, the costs related to training and inference of the model in the cloud can be significant.”

You might also like

Kids Stage Virtual Protests Against ICE on Roblox as National Unrest Grows

Scattered Spider Targets U.S. Insurance Sector in New Wave of Cyberattacks

Goodbye Larry: Startup Blows Up Twitter Logo in Desert to Launch New Marketplace App

Limp elaborated on the fact that the current iteration of Alexa, inclusive of all its familiar features and functions, will remain accessible to users without any charges. He emphasized that any future subscription-based model would need to showcase substantial advancements in capabilities and a notable enhancement in usefulness to justify the introduction of a fee. This move is seen as a strategic approach to balance the cost implications of evolving AI technologies while ensuring that users continue to receive value from the service.

Strategic Embrace of Subscription Model and AI Integration

Additionally, Limp emphasized the ongoing discussions within the company regarding the potential introduction of a subscription-based version, highlighting that the pricing structure has not yet been finalized. He took the opportunity to reassure users that the familiar and appreciated Alexa experience they currently enjoy will remain freely accessible to all. Limp stressed that while the shift to a subscription-based model is indeed on the horizon, it’s not a distant plan but rather a foreseeable development, indicating that this transformation will occur in the not-so-distant future, not spanning across years but in the relatively near term.

Moreover, he shed light on the resource-intensive nature of generative AI models, such as the one in use here. These models demand significant computing resources, and there have been estimations suggesting that the operational costs for running ChatGPT at OpenAI could reach as high as $700,000 per day or even more.

Amazon Contemplates Potential Fees for Alexa Usage Due to Rising AI Costs, Says Departing Executive
Credits: Yahoo Finance

Amazon has truly solidified its commitment to advancing artificial intelligence (AI) through substantial investments in the field. Their dedication was notably highlighted by the recent introduction of an AI-powered version of Alexa, showcasing their continuous efforts to integrate AI into their product line. This innovation was complemented by updates to their Echo Frames and Carrera smart glasses, further underlining the integration of AI technology into their devices.

Recent Developments and Transitions at Amazon: A Glimpse into Strategic Shifts and Future Prospects

In a strategic move, Amazon recently injected a significant financial investment, amounting to an impressive $4 billion, into Anthropic, a prominent competitor in the AI arena. This substantial investment clearly demonstrates Amazon’s ambition to enhance its AI capabilities and compete effectively in this evolving market.

Adding to the shifts within Amazon, their longstanding Senior Vice President of Devices and Services, Mr. Limp, recently announced his departure from the company after a notable 13-year tenure. Interestingly, this announcement came just a month before the launch of these groundbreaking AI-powered products. According to reports, Mr. Panos Panay, a seasoned executive from Microsoft, is expected to succeed Mr. Limp, potentially assuming his influential role within Amazon.

It’s noteworthy that despite these remarkable developments, Amazon has chosen not to issue a formal comment or response regarding these recent changes, leaving industry observers and enthusiasts intrigued during this transformative phase for the company.

It’s crucial to emphasize that, as of now, Amazon has not definitively determined whether or not they will implement fees for the utilization of Alexa services. In a statement, Dave Limp, an executive at Amazon, highlighted that the company is currently examining this potential approach. He stressed that Amazon values its customers’ opinions highly. Before making any decisions, they are committed to gathering extensive feedback from users to ensure that any changes align with their preferences and needs.

Tags: AI CostsAlexaAlexa ServicesamazonDave Limp
Tweet54SendShare15
Previous Post

AI-generated fake naked photos of young girls spark rage in a small Spanish town

Next Post

Lucid Software Fires 7% of it’s Staff After Getting FEDRAMP Authorizaion

Sneha Singh

Sneha is a skilled writer with a passion for uncovering the latest stories and breaking news. She has written for a variety of publications, covering topics ranging from politics and business to entertainment and sports.

Recommended For You

Kids Stage Virtual Protests Against ICE on Roblox as National Unrest Grows

by Harikrishnan A
June 18, 2025
0
Kids Stage Virtual Protests Against ICE on Roblox as National Unrest Grows

As political tensions over immigration enforcement continue to boil across the United States, an unexpected group has taken a stand—kids. But rather than taking to the streets, they’re...

Read more

Scattered Spider Targets U.S. Insurance Sector in New Wave of Cyberattacks

by Harikrishnan A
June 18, 2025
0
Scattered Spider Targets U.S. Insurance Sector in New Wave of Cyberattacks

A wave of cyberattacks targeting U.S. insurance companies is raising alarm among cybersecurity experts, who say the intrusions bear the hallmarks of a threat actor known as Scattered...

Read more

Goodbye Larry: Startup Blows Up Twitter Logo in Desert to Launch New Marketplace App

by Harikrishnan A
June 18, 2025
0
Goodbye Larry: Startup Blows Up Twitter Logo in Desert to Launch New Marketplace App

A fledgling startup has made headlines by taking a massive symbol of Silicon Valley’s past and turning it into ashes—literally. Earlier this year, the 12-foot-tall, 560-pound Twitter bird...

Read more
Next Post
Lucid software

Lucid Software Fires 7% of it's Staff After Getting FEDRAMP Authorizaion

Please login to join discussion

Techstory

Tech and Business News from around the world. Follow along for latest in the world of Tech, AI, Crypto, EVs, Business Personalities and more.
reach us at [email protected]

Advertise With Us

Reach out at - [email protected]

BROWSE BY TAG

#Crypto #howto 2024 acquisition AI amazon Apple bitcoin Business China cryptocurrency e-commerce electric vehicles Elon Musk Ethereum facebook flipkart funding Gaming Google India Instagram Investment ios iPhone IPO Market Markets Meta Microsoft News NFT samsung Social Media SpaceX startup startups tech technology Tesla TikTok trend trending twitter US

© 2024 Techstory.in

No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to

© 2024 Techstory.in

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?