Amazon Expands Alexa Fund to Invest in AI Startups

STARTUPFINTECHAI

NEOCODE

3/27/20252 min read

an amazon store with a person sitting in front of it
an amazon store with a person sitting in front of it

Amazon is broadening the scope of its Alexa Fund to further invest in artificial intelligence startups. Originally established in 2015 to support early-stage voice technology companies, the fund is now targeting emerging AI sectors, including AI-enabled hardware, generative media, smart agents, and advanced AI architectures.

In a blog post shared with TechCrunch, Paul Bernard, the head of the Alexa Fund, explained how the rapid advancements in AI have prompted Amazon to adapt its investment strategy. While the fund’s initial mission was focused on voice technology, the evolution of AI has created new opportunities for growth and innovation.

The fund has recently invested in four notable AI startups:

  1. NinjaTech AI: A comprehensive AI company that provides chatbot capabilities for generating code, images, videos, conducting research, and scheduling meetings. It offers access to models from OpenAI, Meta, Anthropic, Google, and DeepSeek. Amazon noted that NinjaTech AI operates its infrastructure on AWS.

  2. Hedra: An AI-driven media platform that enables users to generate images, audio, and videos through its studio. The company’s Character-3 AI is designed for various content creation applications. Hedra recently secured $10 million from a16z Games Speedrun, Abstract, and Index Ventures.

  3. Ario: An AI-powered family management app specializing in scheduling and task management. It includes a school email decoder that converts school communications into actionable tasks. Paul Bernard praised Ario’s contextual understanding of family management needs.

  4. HeyBoss: A platform that enables users to build websites, apps, games, or prototypes through simple text-based descriptions. Positioned in the growing field of "vibe coding," HeyBoss joins the ranks of other startups like Cursor, Lovable, Replit, and Bolt.new.

For Amazon, these investments provide not only financial returns but also opportunities to integrate its AI models and cloud infrastructure. Many Alexa Fund-backed startups gain early access to Amazon’s private APIs and SDKs, contributing to product development while serving as testing grounds for Amazon’s AI technologies.

The competition in AI startup investments is heating up, with companies like OpenAI, Anthropic, and Google establishing their own funds to support AI innovation. Amazon’s expanded Alexa Fund underscores its commitment to advancing AI technology while staying at the forefront of the industry’s rapid evolution.