Alexa had “no profit timeline,” cost Amazon $25B in 4 years

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Amazon's Alexa voice assistant has cost the company $25 billion over four years without a clear path to profitability. Despite its widespread use and integration into various devices, Alexa's development and maintenance expenses have significantly outweighed any revenue generated. Amazon's focus on building a comprehensive smart home ecosystem has yet to deliver the expected financial returns.

The financial strain caused by Alexa's ongoing costs raises questions about the sustainability of Amazon's investment in smart home technology. With significant resources allocated to enhancing Alexa's capabilities, Amazon must reassess its strategy to ensure the long-term viability of its voice assistant service. The challenge remains to turn a popular but costly feature into a profitable venture.

Source: Ars Technica

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