Subscription Model

Amazon is making its AI-powered Alexa+ widely available to U.S. consumers, moving beyond its previous limited access. This upgraded assistant acts as a sophisticated agent, handling complex conversations and tasks. While a $19.99 monthly subscription unlocks full features, Prime members receive it free. A free trial is also offered with usage limits. Alexa+ aims to compete with advanced AI like ChatGPT by offering enhanced functionality through a dedicated app and website, representing a significant evolution from its 2014 launch.

Tesla is transitioning its Full Self-Driving (FSD) software to a subscription-only model, discontinuing the one-time purchase option. This strategic move aims to secure recurring revenue and align with industry trends favoring Software-as-a-Service. While potentially simplifying updates and data collection, it also occurs amidst increased competition from rivals like Waymo and recent declines in Tesla’s delivery figures. The success of this pivot hinges on continuous FSD improvement and building consumer trust.