Amazon CEO wants to put ads in your Alexa+ conversations

Amazon CEO Andy Jassy envisions integrating advertising into conversations with Alexa+, the company’s advanced AI-powered digital assistant. Currently available to millions of users, Alexa+ enhances natural, multi-turn interactions and is offered free to Prime subscribers, with an additional $20 monthly subscription tier. Jassy indicated that future subscription models might include an ad-free option, while advertising could serve as a tool to help users discover products and generate revenue. This approach marks a significant shift from Amazon’s limited existing Alexa ads, which have so far been confined to occasional visual or audio spots on devices like the Echo Show. Amazon’s push into AI and advertising comes amid substantial investment in AI infrastructure, including a 90% year-over-year increase in capital expenditures to $31.4 billion in Q2 2025, aimed at developing proprietary AI chips and data centers. While AWS revenue grew 18%, Amazon seeks new revenue streams to support these costs. However, challenges remain: Alexa+’s rollout has faced mixed reviews,