Amazon Developing ‘Transformer’ Smartphone With Alexa AI
More than a decade after the Fire Phone struggled to find a foothold in the mobile market, Amazon is preparing a return to the smartphone hardware space. The retail giant is currently developing a new device internally codenamed “Transformer,” according to a report from Reuters.

The project is being spearheaded by ZeroOne, a specialized unit within Amazon’s Devices and Services division. This team is led by J Allard, a former Microsoft executive widely recognized for his instrumental role in the creation of the Xbox gaming console.
Integrating the Amazon Ecosystem
The strategic intent behind “Transformer” is to deepen user engagement with Amazon’s core services. The device is expected to feature personalized optimizations for the company’s primary apps, including:
- Amazon Shopping
- Prime Video
- Prime Music
Central to this experience is a heavy reliance on Alexa. Following a year of intensive development, Amazon launched “Alexa+” this past February. The upgraded assistant leverages generative AI to handle complex tasks, such as itinerary planning, calendar management, recipe curation, and educational support, effectively bridging the gap between a traditional smart home assistant and a modern AI chatbot.
An AI-First Hardware Strategy
Internal discussions suggest that the smartphone will serve as a primary vehicle for Amazon’s broader artificial intelligence ambitions. By placing AI at the core of the mobile experience, the company aims to drive higher adoption rates of its proprietary AI products.
This hardware initiative arrives during a period of massive investment for Amazon. The company recently committed $50 billion to OpenAI and has earmarked $200 billion in projected capital expenditures for 2026, targeting advancements in AI, robotics, and custom silicon chips.
Despite the emergence of these reports, Amazon has officially declined to comment on the development of the “Transformer” smartphone.