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

It looks like Amazon is getting back into the smartphone game. More than 11 years after the e-commerce giant pulled the plug on its first failure, it failed Fire PhoneThe company is now developing a modern smartphone called “Transformer,” Reuters reportciting unknown sources.

The device is being developed by the company’s Devices and Services department, and will have features that will make it easier to use Amazon apps, including Amazon Shopping, Prime Video, and Prime Music, the report said.

The smartphone can also support Alexa, Amazon’s best-selling smart home assistant, increasing AI chops and expanding support for working with many of the company’s tools. The AI ​​feature is said to be the focus of the smartphone, which is 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 new section within the Devices section called ZeroOnewhich is led by J Allard, a former Microsoft executive who helped create the Xbox.

The news comes as Amazon has been moving into AI, and investing $50 billion in OpenAI soonand $200 billion in capital spending its efforts in AI, chips, and robotics in 2026.

The company spent more than a year revamping its Alexa assistant with AI features, finally launching it in February as. Alexa+. The assistant keeps his smart home gadgets, and now he can do many things that other AI chatbots can do – such as planning a trip, updating a shared calendar, finding and saving recipes in the library, creating movie ideas, helping with household chores, searching for a topic, etc.

Amazon declined to comment.