Alexa is a virtual personal assistant created by Amazon that allows users to interact with devices like the Amazon Echo using voice commands. Alexa uses natural language processing to understand user intent from voice commands and complete tasks like playing music, answering questions by accessing online sources, and controlling smart home devices. Developers can create new skills for Alexa by building speech interfaces using APIs, SDKs, and web services provided by Amazon. Code is deployed to AWS Lambda to handle voice interactions with Alexa devices.