Amazon appears to be making a return to the smartphone market. According to a Reuters report, more than eleven years after discontinuing its unsuccessful Fire Phone, the company is now developing a new smartphone with the internal codename “Transformer.”
The device is being created by Amazon’s Devices and Services division. It is designed to feature personalized functions that would integrate seamlessly with Amazon’s ecosystem of apps, such as Amazon Shopping, Prime Video, and Prime Music.
The smartphone will also support Alexa, Amazon’s smart assistant. Amazon has been enhancing Alexa with advanced artificial intelligence capabilities and expanding its compatibility across the company’s devices. AI features are reportedly a major focus for this phone, which is viewed internally as a tool to promote the use of Amazon’s AI products.
Development is being handled by a relatively new team within the Devices division called ZeroOne. This unit is led by former Microsoft executive J Allard, who played a key role in the creation of the Xbox.
This development coincides with Amazon’s significant investments in artificial intelligence. The company recently invested fifty billion dollars into OpenAI and has projected two hundred billion dollars in capital expenditures for 2026 directed toward its AI, semiconductor, and robotics initiatives.
Amazon spent over a year upgrading its Alexa assistant with generative AI features, relaunching it this February as Alexa+. The revamped assistant retains its smart home functionalities and can now perform a wide range of tasks similar to other AI chatbots, including planning travel itineraries, updating shared calendars, finding and saving recipes, making movie recommendations, assisting with homework, and exploring various topics.
Amazon has declined to comment on these reports.