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

Looks like Amazon’s getting back into the smartphone game. More than 11 years after the e-commerce giant pulled the plug on its failed first effort, the Fire Phone, the company is now developing a new smartphone codenamed “Transformer,” Reuters reported, citing anonymous sources.

The device is being developed by the company’s Devices and Services division, and it would feature personalized features that would make it easier to use Amazon’s suite of apps, including Amazon Shopping, Prime Video, and Prime Music, the report said.

The smartphone would also support Alexa, the smart home assistant that Amazon has been investing heavily in, adding AI chops and expanding support to work with most of the company’s devices. AI features are said to be a big focus for the smartphone, which is being seen internally as a way to encourage Amazon customers to use its AI products, Reuters reported.

The smartphone is said to be developed by a relatively new unit within the Devices division called ZeroOne, which is led by J Allard, a former Microsoft executive who helped create the Xbox.

The news comes as Amazon has been going all-in on AI, investing $50 billion into OpenAI recently, and projecting $200 billion in capital expenditures toward its AI, chips, and robotics efforts in 2026.

The company spent more than a year revamping its Alexa assistant with generative AI features, finally launching it this February as Alexa+. The assistant keeps its smart home chops, and can now do most things that other AI chatbots can — like planning an itinerary for a trip, updating a shared calendar, finding and saving recipes to a library, making movie recommendations, helping with homework, exploring a topic, and more.

Amazon declined to comment.