Amazon Stock Climbs on Deal to Bolster Alexa with TomTom Navigation
The collaboration will integrate TomTom’s mapping technology directly into Alexa, creating a more sophisticated in-car assistant to challenge Google and Apple.
Amazon.com, Inc. (AMZN) is accelerating its push into the automotive sector, announcing a significant partnership with navigation specialist TomTom to enhance the capabilities of its Alexa voice assistant in vehicles. The news sent Amazon shares up nearly 3% in recent trading, reflecting investor optimism about the tech giant's deepening ambitions in the competitive connected-car market.
Shares of the $2.42 trillion company rose 2.9% to $233.06 as investors digested the implications of the deal. The collaboration will embed TomTom’s extensive mapping and navigation software directly into the Alexa Custom Assistant platform. This move is designed to create a more seamless and intelligent in-vehicle experience, where drivers can engage in more natural, conversational requests for directions and location-based services.
A Smarter Co-Pilot for the Car
The partnership aims to move beyond basic commands, enabling what the companies call an "agentic integration." This allows the system to function as an AI co-pilot, capable of understanding complex queries and context. For example, a driver could ask Alexa to find a highly-rated Italian restaurant along their current route that will still be open when they arrive, and the system could initiate the route without needing multiple commands.
"This milestone integration… enables automakers to deliver the industry's most advanced, AI-powered navigation experience," the companies stated in their official announcement. For automakers, the enhanced Alexa platform offers a way to provide sophisticated, branded, and customizable voice and navigation systems in their vehicles.
Challenging the Dashboard Dominance of Google and Apple
The move positions Amazon more directly against Google's Android Automotive and Apple's CarPlay, the two dominant forces in-car infotainment. Google has secured a strong foothold with its native Android Automotive operating system, which has been adopted by companies like General Motors and Ford. Further, Google is set to integrate its powerful Gemini AI into Ford vehicles, promising even more advanced features.
Apple, meanwhile, launched its next-generation CarPlay in 2025 with partners like Aston Martin, aiming for a deeper integration that takes over all of the vehicle's screens. However, this all-or-nothing approach has met some resistance from automakers wary of ceding control of their user experience. Amazon's strategy with Alexa Custom Assistant offers a middle ground: a powerful, customizable platform that allows car brands to maintain their unique interface and brand identity.
This isn't Amazon's only foray into advanced navigation. The company recently announced a separate but similar partnership with HERE Technologies to develop AI-driven conversational navigation, signaling a multi-pronged strategy to become a foundational software and AI supplier for the automotive industry.
The Road Ahead
While the partnership is a significant step forward, Amazon's success hinges on automaker adoption. The battle for the dashboard is fierce, and convincing manufacturers to integrate Alexa over the deeply entrenched ecosystems of its rivals will be a key challenge. The new capabilities are expected to be showcased at the upcoming CES 2026 technology conference, where the industry will get a closer look at the future of Amazon's in-car ambitions.
For now, the market is rewarding the strategic initiative. With an average analyst price target of around $295, Wall Street sees further upside, and this potent combination of AI and automotive technology provides another significant avenue for growth.