Amazon expects Alexa+ to incur approximately $1.7 billion in AWS cloud costs in 2026, nearly three times the previous year’s total. The increase is driven mainly by rising memory and component costs, which are also squeezing margins in the company’s device business. Amazon is considering shifting some workloads away from Anthropic’s models toward cheaper in-house systems, with potential savings of around $450 million. Moonraker, the highest-cost AI initiative connected to Alexa+, could be delayed or scaled back after projected GPU spending exceeded $100 million in 2026. Even with these possible savings, the Alexa+ division was still expected to miss its financial targets for the year.
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