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• CEO Andy Jassy is personally overseeing the 'Metis' project.
• Amazon chief executive expects AI to be the next growth driver.
• BofA analysts reiterated their buy rating on Amazon stock today.

Amazon.com Inc (AMZN) is in focus today following a report that it’s working on a new AI chatbot that will compete with the world-renowned ChatGPT. 

Shares of the tech titan are currently up some 25% versus their year-to-date low. 

What we know about ‘Metis’ so far
 

Andy Jassy – the chief executive of AMZN is personally overseeing the strategic project that the multinational has codenamed “Metis”, as per a source who talked to Business Insider on condition of anonymity on Monday. 

Metis will reportedly be more powerful than Amazon’s existing Titan foundation model. The new artificial intelligence chatbot will likely offer advanced features including follow-up suggestions, sharing links to sources, and image-based responses. 

It may also serve as an AI agent capable of concocting detailed plans like travel itineraries. 

Metis is already in an advanced stage and will likely roll out as early as September, the report added. 

AI could be the next growth driver for AMZN
 

The news arrived a couple of months after Amazon.com Inc. launched “Q” – a generative AI chatbot for writing or fixing code. 

Representatives of the Nasdaq-listed firm refrained from commenting on the report on Monday. The aforementioned development, however, is in line with the company’s commitment to artificial intelligence which CEO Andy Jassy recently dubbed the next major growth driver for AMZN. 

Amazon shares are down about 1.0% at writing suggesting investors are cautiously assessing how it impacts Amazon’s standing in the AI race. 

Note that Amazon stock has not joined its tech peers in announcing a dividend yet. 

Is Amazon stock worth investing in June 2024?
 

Also on Monday, analysts at Bank of America Securities reiterated their “buy” rating on Amazon stock following a report that it plans on starting to charge for Alexa. 

Reuters reports that Amazon is working to replace its current voice assistant with a two-tiered AI-powered Remarkable Alexa by August.

The paid version of Alexa will be able to handle more advanced tasks including ordering from Uber Eats and writing emails with a single prompt. The investment firm expects the paid tier to deliver up to a $600 million boost to AMZN revenue. 

Plans of a paid tier are also in line with Amazon’s years-long commitment to making Alexa profitable. 

Last week, the $1.93 trillion behemoth based out of Seattle, Washington committed to investing €10 billion and creating some 4,000 jobs in Germany. Amazon will report its Q2 financial results about a month from now. The consensus is for it to earn $1.02 a share versus 63 cents per share a year ago. 

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