More than a decade after its Fire Phone flop, Amazon is reportedly back in the smartphone game. Reuters cites anonymous sources stating that the tech behemoth is developing a new device codenamed “Transformer,” with a strong emphasis on personalization and artificial intelligence.

The smartphone would integrate deeply with Amazon's ecosystem, enhancing user experience for apps like Shopping, Prime Video, and Prime Music. An internal focus of the device is to promote the use of AI products among customers by making Alexa more versatile and integrated into everyday life.

Amazon has recently shown its commitment to AI, pouring $50 billion into OpenAI and planning significant investments in AI, chips, and robotics for 2026. The company’s Devices division is leading this effort through a new unit called ZeroOne, helmed by J Allard, formerly of Microsoft.

The new smartphone would see Alexa take on expanded roles beyond smart home management, offering functionalities such as trip planning, calendar updates, recipe saving, and more. This marks a significant step in Amazon’s AI journey, following the recent launch of Alexa+ with generative AI features.

Despite Amazon's silence on the matter, insiders suggest that this device could be more than just a simple smartphone; it aims to become an integral part of Amazon's broader strategy to strengthen its AI offerings and deepen customer engagement through technology integration.