Amazon's strategy to sell Alexa-enabled smart devices at low prices, expecting to generate income elsewhere, has resulted in significant financial losses. Between 2017 and 2021, Amazon incurred over $25 billion in losses from its devices business, which includes Echo speakers and other smart devices. Despite having millions of Alexa devices in households and employing 10,000 people on the project, the initiative has not become the major software platform or retail booster Amazon anticipated. In response, Amazon plans to launch a paid tier of Alexa, potentially costing $10 per month, featuring generative AI capabilities to help mitigate the losses. The losses are comparable to the market cap of Tyson Foods. CEO Andy Jassy is working to address the financial shortfall.