Amazon has big plans to launch Alexa.

Amazon’s voice assistant will answer your question with the following: “My name’s Alexa and I must say that I’m the worst AI in the cloud right now.” My responses are quicker than yours. They call me the master.

According to the Seattle-based group, it is far from true. Dave Limp, the senior vice president for devices and services at Amazon, stated that the company remains “unbelievably committed to Alexa” and other “riskier” technology projects in his first interview with European media since Amazon’s announcement last month. He said, “I have never been more optimistic about Alexa.”

The company provided key numbers to back up that claim, including that Alexa engagement has increased globally by more than 30% in the last year and that Alexa is used daily by over a million Britons.

Limp has a huge remit. Limp is also responsible for the Kindle, artificial intelligence, and everything else Amazon has to offer. Some initiatives, such as Alexa features that allow doctors to connect to them through so-called “telehealth”, have been canceled due to the cuts to his division.

Limp stated that certain things don’t look as good when you see the world through the lens of an uncertain economy.

Alexa’s future profitability is still a big question. It is currently losing money, which was one reason why there was so much concern about it during a downturn. Limp wouldn’t confirm when Alexa would be profitable. However, Limp said that there was an internal plan for it: “We are figuring out how we can monetize it.” Amazon’s Smart Home division, which includes Alexa, is growing 25 to 30% year-on-year. Every time someone engages with Smart Home, they go out and buy smart lights and smart plugs that make their homes smarter. Some of these items are sold on Amazon. That’s also a flywheel.

Music is another revenue stream. “Obviously, there are some other subscription services such as Spotify and Apple, but also Amazon Music.”

When it comes down to Alexa’s challenge, the elephant is , the phenomenal success of ChatGPT by OpenAI, an artificial intelligence creator and a comparative technology tiddler. Limp stated that competition is healthy, but dismissed it. He said ChatGPT was lacking Alexa’s personality and memory, as well as knowledge of current events.

Alexa would be able to tell you all about the World Cup and who scored which goal in each match. ChatGPT currently doesn’t have this information. ChatGPT doesn’t have real-time knowledge. However, it does have the ability to screenwrite screenplays. Alexa can be very personal today. It can remember things such as your favorite music.

He said that technology advances would soon become more sophisticated, and allow users to chat with the bot. “We’re only at the tip of iceberg of machine learning capabilities for customers. GPT and Alexa can be used for transactional purposes. You can ask a question and get an answer. Alexa, what is the time? You’ll receive an answer. Alexa, who scored in the Chelsea match? You’ll receive an answer. This is not how people communicate. We interject and then go back and forth. We can use context from previous conversations. Large language models and AI will make AI more conversational.

He dismissed the notion that Amazon’s devices would see significant price increases. They are currently priced to break even. “If customers purchase our product and then put it in a drawer, shame on them. But if they do use it, we have support services that back our products that make money. A Kindle, for example, where customers can buy books over time. We make a small amount, authors make a little, and customers love those books. This is the general business model for all devices.