If announced, this would mark Alexa's most significant evolution since its debut in 2014. Although Amazon has long been a leader in the AI assistant space, the landscape is rapidly shifting. Companies like OpenAI, Google and Anthropic are rolling out increasingly sophisticated AI assistants capable of multitasking and completing complex requests.

The new generative AI-powered Alexa represents at once a huge opportunity for Amazon, which counts more than half a billion Alexa-enabled devices in the market, and a tremendous risk. Amazon is hoping the revamp,

Amazon.com shares slipped Thursday after it projected weaker-than-expected sales for the first quarter, even as it spent a record amount on capital expenditure to build infrastructure for artificial-intelligence services.

Amazon shares have increased roughly 5.8% in the previous month, reflecting investing optimism ahead of the earnings report. Beyond earnings, Amazon is navigating other challenges