- Supposedly Amazon has operated things like AWS at a loss for long periods of time (I highly doubt this - AWS has never been cheap).
"And it's through this mass adoption of Alexa devices that consumers (and the army of human beings Amazon hires to listen to consumers) can collectively train Amazon’s voice recognition system, which is then monetized through Amazon’s primary source of profits: Amazon Web Services."
There is no way Amazon has echo / alexa out there just so it can develop a language recognition model. They could just record their customer service reps talking to customers, train it on the millions of movies and shows with subtitles on amazon prime or train using audio book narrations. And the profits from their transcription service are not likely very high relative to other services they offer.
Whoever becomes the device that people want in their home, the one they turn to to coordinate their heating and cooling, arming their security system, getting the weather and traffic is going to be in an incredible position.
Google is also chasing this market, and apple to a degree. Google has an incredible voice recognition model already. They are chasing this market because it is THE most powerful and personal way to have a connection to the consumer. If you don't understand WHY these companies want apple siri, google assistant or amazon alexa everywhere you don't see the future. These companies will OWN consumer loyalty. A child growing up in a amazon echo / alexa integrated house may become a lifelong brand consumer including when they buy their house and setup their home automation etc.
The other thing, despite all the claims about "amazon microphones" - people will PAY for these - by the truckload. If I could get a space already pre-integrated with home automation etc? Very appealing. And normal people do call these things echo devices or alexa.
These companies are trying to deliver things to consumers that generate high brand loyalty. It seems to be working. I noticed this when browsing for cars - EVERY salesperson emphasizes that their cars supports "apple" carplay etc. My guess - 50%+ of even CAR buyers want to have a connection to their brand loyal assistant.