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Amazon to charge non-Prime consumers to use Alexa

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Amazon has introduced Alexa Plus (Alexa+), an upgrade to the Alexa voice assistant that uses generative artificial intelligence.[1] The Alexa voice assistant is also available on Amazon's range of smart speakers, such as the Amazon Echo.

Background

Until 2025, Amazon Alexa had been using a revenue model centered around the sale of Internet of Things, with over half a billion units sold.[2] In March of 2025 they introduced an Alexa+ subscription model to mitigate the $25 billion USD loss from Alexa devices over four years (2017-2021).[1][3][4] In March of 2025, Amazon Echo changed the terms of voice usage, removing the "Do Not Send Voice" feature at the same time as Alexa's capabilities were expanded with generative AI features.[5][6]

Adding a subscription cost

Amazon has rolled out it's "Alexa+" subscription model, costing non-Prime users $19.99USD per month to access and use their Alexa devices, in comparison to the $14.99USD monthly cost of an Amazon Prime subscription.[citation needed (1 Dec 2025)]

This change comes at a time where many companies are adding a subscription fee, retroactive to user purchases, to access certain features.

Amazon's Response

[update needed]

Consumer Response

Consumer and analyst sentiment around has been mixed.[citation needed (1 Dec 2025)]

Analyst Reactions

  • Tom Forte of Maxim Group sees Alexa+ as Amazon's shot at challenging ChatGPT rather than improving Alexa. If executed well, “maybe we’re talking less about OpenAI vs. Anthropic and more of Alexa vs. ChatGPT” [7] .
  • MarketWatch & TheVerge states that the Alexa+ model is bolstering Amazons' ability to monetize a platform they have lost billions on via subscription tiers and targeted ads, recognizes that there could be a larger play here to make Amazon a big game contributor to the AI/LLM arms race. [8]
  • Business Insider suggests Amazon’s multi-year Alexa restructuring and layoffs set the stage for a premium tier. Premium Alexa could unlock significant new revenue if a fraction of users subscribe. [9]

See also

References

  1. ↑ 1.0 1.1 Panay, Panos (26 Feb 2025). "Introducing Alexa+, the next generation of Alexa". Amazon. Archived from the original on 27 Feb 2025. Retrieved 1 Dec 2025.
  2. ↑ Garfinkle, Alexandra (2023-05-17). "Amazon has sold more than 500 million Alexa-enabled devices, drops 4 new Echo products". Yahoo! Finance. Archived from the original on 24 Jul 2025. Retrieved 1 Dec 2025.
  3. ↑ Harding, Scharon (2024-07-23). "Alexa had "no profit timeline," cost Amazon $25 billion in 4 years". Ars Technica. Archived from the original on 24 Jul 2025. Retrieved 1 Dec 2025.
  4. ↑ Harding, Sharon (26 Sep 2024). "Amazon wants to charge a subscription fee for Alexa eventually". Ars Technica. Archived from the original on 26 Sep 2024. Retrieved 1 Dec 2025.
  5. ↑ Arntz, Pieter (18 Mar 2025). "Amazon disables privacy option, will send your Echo voice recordings to the cloud". Malwarebytes. Archived from the original on 6 Oct 2025. Retrieved 1 Dec 2025.
  6. ↑ Harding, Sharon (17 Mar 2025). "Everything You Say to Your Echo Will Soon Be Sent to Amazon, and You Can't Opt Out". Wired. Archived from the original on 25 March 2025. Retrieved 1 Dec 2025.
  7. ↑ "Amazon Unveils AI-Driven Alexa+ to Compete with ChatGPT". GuruFocus. 2025-02-26. Retrieved 1 Dec 2025.{{cite web}}: CS1 maint: url-status (link)
  8. ↑ Tuohy, Jennifer Pattison (2025-08-01). "Amazon eyes ads and upcharges for Alexa Plus". The Verge. Archived from the original on 2 Aug 2025. Retrieved 1 Dec 2025.
  9. ↑ "Buy Rating on Amazon: Anticipating Revenue Growth from Premium Alexa Subscription and Margin Improvement". Business Insider. 2024-06-24. Archived from the original on 1 Dec 2025. Retrieved 1 Dec 2025.
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