Amazon working on new smartphone with Alexa at its core, report says

Amazon appears poised to make a significant return to the smartphone sector. Over a decade after discontinuing its initial venture, the Fire Phone, the tech giant is reportedly working on a new device known internally as "Transformer," according to sources cited by Reuters. This new smartphone is being developed by Amazon's Devices and Services division, with a strong focus on enhancing user experience through personalized features that streamline access to the company's vast array of applications, including Amazon Shopping, Prime Video, and Prime Music. Notably, the device will integrate Alexa, Amazon's intelligent virtual assistant, which has been a focal point of the company's recent investments. AI capabilities are expected to play a pivotal role in the Transformer, as Amazon aims to promote the use of its AI offerings among customers. The development effort is being spearheaded by a newly established team within the Devices division called ZeroOne, led by J Allard, a former Microsoft executive known for his contributions to the Xbox. This announcement aligns with Amazon's broader strategy of investing heavily in artificial intelligence, having recently allocated $50 billion to OpenAI and forecasting $200 billion in capital spending on AI, chip technology, and robotics by 2026. The company has also spent considerable time enhancing Alexa's capabilities, launching a new version earlier this year that incorporates generative AI features, allowing the assistant to perform tasks such as trip planning, calendar management, recipe organization, and more. Amazon has not provided any official comments on these developments.