Amazon is set to introduce a paid subscription service for a next-generation Alexa voice assistant in direct competition with models from OpenAI, Apple, and Google. The new Alexa service will feature conversational generative AI and come in two tiers, with the more advanced tier priced between $5 to $10 per month. The company is pushing engineers to complete the new service before an August deadline. The updated Alexa is expected to offer more expressive responses and enable users to engage in conversations without needing the wake phrase "Alexa" each time. Amazon has already showcased the capabilities of the new Alexa during a hardware event last year, emphasizing its ability to understand context and respond to vague prompts. The subscription model is part of Amazon's plan to replace the free version of Alexa with a more powerful AI-powered service. Despite a significant investment in AI research, Amazon has yet to finalize the pricing for the subscription service.