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Amazon's Echo Spot device powered by its Alexa digital assistant (Robert Lever/Getty Images)

Amazon’s planning to launch a generative-AI-infused “Alexa+” subscription to reboot its devices division

Amazon’s rolling out a major update to Alexa — a new subscription-based service powered by generative AI.

Nia Warfield
2/26/25 2:03PM

Amazon announced a major update to its Alexa digital assistant on Wednesday, introducing “Alexa+,” a subscription-based service powered by generative AI that will roll out next month. The new Alexa will feature enhanced capabilities such as booking reservations, purchasing concert tickets, providing personalized recipe suggestions, and even remembering dietary restrictions. It’s designed to learn users’ routines and proactively assist with everyday tasks. Amazon will charge $19.99 per month for the service or offer it free to Prime members. The service will be available on most Alexa devices, beginning with the Echo Show.

This update comes as Amazon works to revitalize Alexa, which has struggled to generate meaningful profit despite selling over 500 million devices. The company has lost billions on its devices division, which includes the Echo and Kindle. With the introduction of Alexa+, Amazon hopes the subscription model will help cover the high costs of AI development and turn the Alexa business profitable.

Amazon isn’t the only tech giant infusing AI into its smart assistants. Last year, Apple rolled out its Apple Intelligence platform to enhance Siri, with goals of making it more conversational and competitive with ChatGPT. But recent upgrades have faced delays, with some features, originally expected in April, now likely postponed until later this year.

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Volkswagen is reportedly closing in on its own, separate tariff deal with the US

In a bid to get its own tariff rate below the 15% applied to most EU exports, Volkswagen is dangling big US investments.

Speaking at a trade show Monday, VW CEO Oliver Blume said the automaker is in advanced talks on a deal to limit its own tariff burden. Volkswagen reported a tariff cost of $1.5 billion in the first half of the year.

Speaking to Bloomberg TV, Blume said the company is in close contact with the Trump administration and has had “good talks” about its separate deal. The current 15% tariff rate on EU vehicles would still “be a burden for Volkswagen,” Blume said.

A company reaching a tariff deal separate from its home country isn’t typical, though there’s already precedent this year, with Apple’s $100 billion US investment deal amid chip tariffs and President Trump’s threats to add a levy to smartphones. Nvidia and AMD similarly struck a deal to receive the ability to sell chips in China and in exchange agreed to give the US 15% of the revenue from those sales.

Speaking to Bloomberg TV, Blume said the company is in close contact with the Trump administration and has had “good talks” about its separate deal. The current 15% tariff rate on EU vehicles would still “be a burden for Volkswagen,” Blume said.

A company reaching a tariff deal separate from its home country isn’t typical, though there’s already precedent this year, with Apple’s $100 billion US investment deal amid chip tariffs and President Trump’s threats to add a levy to smartphones. Nvidia and AMD similarly struck a deal to receive the ability to sell chips in China and in exchange agreed to give the US 15% of the revenue from those sales.

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