Amazon plans to re-enter the smartphone market with a new project, "Transformer," focusing on deep AI integration.

Gate News reports that on March 21, Amazon (AMZN.O, NASDAQ ticker) is launching a new smartphone. According to four sources familiar with the matter, this latest project, internally called “Transformer,” is being developed within its devices and services division. The phone is seen as a potential mobile personalized device that can sync with the home voice assistant Amazon Alexa and serve as a connector for Amazon users throughout their day.

Sources say that a key focus of the “Transformer” project is to deeply integrate artificial intelligence capabilities into the device. This approach could eliminate reliance on traditional app stores, which typically require downloading and registering applications before use. Amazon Alexa is likely to become a core feature of the phone, but it may not serve as the primary operating system.

Currently, the timeline for the “Transformer” project is unclear. Sources indicate that the project could be canceled if strategic priorities change or due to financial issues. An Amazon spokesperson declined to comment.

Amazon previously launched its first smartphone, the Amazon Fire Phone, in 2014, aiming to compete with Apple and Samsung. However, the product, overseen personally by founder Jeff Bezos, was abandoned within less than a year.

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