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Amazon’s AI Revolution: Hiring Covariant Founders and Licensing Deal

Amazon hires Covariant founders, licenses AI models to revolutionize warehouse automation, enhancing safety and efficiency.

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Amazon AI warehouse automation

TL;DR:

  • Amazon hires three Covariant founders and licenses their AI models.
  • Covariant’s AI automates warehouse tasks, promising immediate value.
  • Amazon aims to enhance safety and efficiency in fulfillment centers.

Amazon, the tech giant known for its innovative strides in e-commerce and AI, has made a significant move by hiring three founders from Covariant, a Bay Area startup specializing in AI for advanced warehouse robotics systems. This deal includes a non-exclusive license to Covariant’s AI models, marking another step in Amazon’s quest to revolutionize its fulfillment centers.

Amazon’s Strategic Move

Amazon’s latest move is part of a growing trend where tech giants are bringing AI heavyweights into their fold through what are essentially “reverse acquihires.” In June, Amazon struck a similar deal with Adept, a startup building AI agents that automate enterprise workflows. This strategy allows Amazon to leverage cutting-edge AI technology without fully acquiring the companies.

Covariant: The AI Powerhouse

Founded in 2017, Covariant focuses on AI-powered robotics systems. Their platform, dubbed the “Covariant Brain,” automates various warehouse tasks such as order picking, sortation, item induction, and depalletization. Covariant’s technology promises to deliver value on “Day One,” a phrase reminiscent of Amazon’s own marketing.

Covariant’s impressive client list includes healthcare supply manufacturer McKesson, German retail giant Otto Group, and Radial, an e-commerce fulfillment solution company. The startup has raised $222 million, with its latest Series C round in April 2023 valuing the company at $625 million.

Amazon’s Journey into Warehouse Robotics

Amazon’s foray into warehouse robotics began with the acquisition of Kiva Systems about 11 years ago. Since then, the company has rolled out a series of warehouse robots, aiming to automate the process of moving products and packages through its fulfillment and sortation centers.

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However, this automation has not been without scrutiny. A 2019 report by the Center for Investigative Journalism highlighted a higher injury rate at Amazon’s robotic fulfillment centers compared to its older facilities. Amazon has disputed these claims, citing lower incident rates at its robotics sites in 2022.

The Impact on Worker Safety

Ty Brady, the chief technologist for Amazon Robotics, emphasized the company’s goal to eliminate mundane, tedious, and repetitive tasks, making fulfillment centers safer. He stated, “I want to make things safer inside our fulfillment centers. I don’t want folks to have to lift heavy boxes and crouch down on their knees or reach over their shoulders. And if we can have robotic systems to do that, that’s a win for everybody.”

The Future of Amazon’s AI and Robotics

With the addition of Covariant’s AI models, Amazon aims to drive new ways to generalize how its robotic systems learn and provide dynamic opportunities for automation. This move will expand Amazon’s AI and robotics team in the Bay Area, further solidifying its position as a leader in AI-driven warehouse automation.

Regulatory Scrutiny

These deals between tech giants and smaller startups have caught the attention of regulators. Amazon has reportedly faced questions from the U.S. Federal Trade Commission related to the Adept deal, highlighting the growing scrutiny over such arrangements.

The Road Ahead for Covariant

Covariant will continue to operate independently, with Ted Stinson taking over as CEO and Tianhao Zhang leading the company alongside Stinson. About a quarter of Covariant’s workforce, which numbers over 160 employees, will join Amazon’s Fulfillment Technologies & Robotics team.

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A New Era of Automation

Amazon’s strategic move to hire Covariant founders and license their AI models signals a new era of automation in its fulfillment centers. By leveraging Covariant’s advanced AI, Amazon aims to enhance safety, efficiency, and customer satisfaction. This deal underscores the company’s commitment to staying at the forefront of AI and robotics technology.

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What do you think about Amazon’s latest move into AI-driven warehouse automation? How do you see this impacting the future of e-commerce and worker safety? Share your thoughts and experiences below, and don’t forget to subscribe for updates on AI and AGI developments.

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  • To learn more about Amazon’s hiring of Covariant founders, tap here.

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Is AI Really Paying Off? CFOs Say ‘Not Yet’

CFOs are struggling with AI monetisation, with many failing to capture its financial value, essential for AI’s success in the boardroom.

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AI monetisation

TL;DR — What You Need to Know:

  • AI monetisation is a priority: Despite AI’s transformative potential, 71% of CFOs say they’re still struggling to make money from it.
  • Traditional pricing is outdated: 68% of tech firms find their legacy pricing models don’t work for AI-driven economies.
  • Boardrooms are getting serious: AI monetisation is now a formal boardroom priority, but the tools to track usage and profitability remain limited.

Global Bean Counters are Struggling to Unlock AI Monetisation, and That’s a Huge Issue

AI is being hailed as the next big thing in business transformation, yet many companies are still struggling to capture its financial value.

A new global study of 614 CFOs conducted by DigitalRoute reveals that nearly three-quarters (71%) of these executives say they are struggling to monetise AI effectively, despite nearly 90% naming it a mission-critical priority for the next five years.

But here’s the kicker: only 29% of companies have a working AI monetisation model. The rest? They’re either experimenting or flying blind.

So, what’s the hold-up? Well, it’s clear: traditional pricing strategies just don’t fit the bill in an AI-driven economy. Over two-thirds (68%) of tech firms say their legacy pricing models are no longer applicable when it comes to AI. And even though AI has moved to the boardroom’s priority list — 64% of CFOs say it’s now a formal focus — many are still unable to track individual AI consumption, making accurate billing, forecasting, and margin analysis a serious challenge.

The concept of an AI “second digital gold rush” has been floating around, with experts like Ari Vanttinen, CMO at DigitalRoute, pointing out that companies are gambling with pricing and profitability without real-time metering and revenue management systems.

This is where the real opportunities lie. Vanttinen’s insight?

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“Every prompt is now a revenue event.”
Ari Vanttinen, CMO at DigitalRoute
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So, businesses that can meter AI consumption at the feature level and align their finance and product teams around shared data will unlock the margins the market expects.

Regional differences are also apparent in the study. Nordic countries are leading in AI implementation but are struggling with profitability. Meanwhile, France and the UK are showing stronger early commercial returns. The US, while leading in AI development, is more cautious when it comes to monetisation at the organisational level.

Here’s the key takeaway for CFOs: AI is a long-term play, but to scale successfully, businesses need to align their product, finance, and revenue teams around usage-based pricing, invest in new revenue management infrastructure, and begin tracking consumption at the feature level from day one.

The clock is ticking — CFOs need to stop treating AI as a cost line and start seeing it as a genuine profit engine.

So, what’s holding your company back from capturing AI’s full value?

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Anthropic’s CEO Just Said the Quiet Part Out Loud — We Don’t Understand How AI Works

Anthropic’s CEO admits we don’t fully understand how AI works — and he wants to build an “MRI for AI” to change that. Here’s what it means for the future of artificial intelligence.

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how AI works

TL;DR — What You Need to Know

  • Anthropic CEO Dario Amodei says AI’s decision-making is still largely a mystery — even to the people building it.
  • His new goal? Create an “MRI for AI” to decode what’s going on inside these models.
  • The admission marks a rare moment of transparency from a major AI lab about the risks of unchecked progress.

Does Anyone Really Know How AI Works?

It’s not often that the head of one of the most important AI companies on the planet openly admits… they don’t know how their technology works. But that’s exactly what Dario Amodei — CEO of Anthropic and former VP of research at OpenAI — just did in a candid and quietly explosive essay.

In it, Amodei lays out the truth: when an AI model makes decisions — say, summarising a financial report or answering a question — we genuinely don’t know why it picks one word over another, or how it decides which facts to include. It’s not that no one’s asking. It’s that no one has cracked it yet.

“This lack of understanding”, he writes, “is essentially unprecedented in the history of technology.”
Dario Amodei, CEO of Anthropic
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Unprecedented and kind of terrifying.

To address it, Amodei has a plan: build a metaphorical “MRI machine” for AI. A way to see what’s happening inside the model as it makes decisions — and ideally, stop anything dangerous before it spirals out of control. Think of it as an AI brain scanner, minus the wires and with a lot more math.

Anthropic’s interest in this isn’t new. The company was born in rebellion — founded in 2021 after Amodei and his sister Daniela left OpenAI over concerns that safety was taking a backseat to profit. Since then, they’ve been championing a more responsible path forward, one that includes not just steering the development of AI but decoding its mysterious inner workings.

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In fact, Anthropic recently ran an internal “red team” challenge — planting a fault in a model and asking others to uncover it. Some teams succeeded, and crucially, some did so using early interpretability tools. That might sound dry, but it’s the AI equivalent of a spy thriller: sabotage, detection, and decoding a black box.

Amodei is clearly betting that the race to smarter AI needs to be matched with a race to understand it — before it gets too far ahead of us. And with artificial general intelligence (AGI) looming on the horizon, this isn’t just a research challenge. It’s a moral one.

Because if powerful AI is going to help shape society, steer economies, and redefine the workplace, shouldn’t we at least understand the thing before we let it drive?

What happens when we unleash tools we barely understand into a world that’s not ready for them?

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Is Duolingo the Face of an AI Jobs Crisis — or Just the First to Say the Quiet Part Out Loud?

Duolingo’s AI-first shift may signal the start of an AI jobs crisis — where companies quietly cut creative and entry-level roles in favour of automation.

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AI jobs crisis

TL;DR — What You Need to Know

  • Duolingo is cutting contractors and ramping up AI use, shifting towards an “AI-first” strategy.
  • Journalists link this to a broader, creeping jobs crisis in creative and entry-level industries.
  • It’s not robots replacing workers — it’s leadership decisions driven by cost-cutting and control.

Are We at the Brink of an AI Jobs Crisis

AI isn’t stealing jobs — companies are handing them over. Duolingo’s latest move might be the canary in the creative workforce coal mine.

Here’s the thing: we’ve all been bracing for some kind of AI-led workforce disruption — but few expected it to quietly begin with language learning and grammar correction.

This week, Duolingo officially declared itself an “AI-first” company, announcing plans to replace contractors with automation. But according to journalist Brian Merchant, the switch has been happening behind the scenes for a while now. First, it was the translators. Then the writers. Now, more roles are quietly dissolving into lines of code.

What’s most unsettling isn’t just the layoffs — it’s what this move represents. Merchant, writing in his newsletter Blood in the Machine, argues that we’re not watching some dramatic sci-fi robot uprising. We’re watching spreadsheet-era decision-making, dressed up in futuristic language. It’s not AI taking jobs. It’s leaders choosing not to hire people in the first place.

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In fact, The Atlantic recently reported a spike in unemployment among recent college grads. Entry-level white collar roles, which were once stepping stones into careers, are either vanishing or being passed over in favour of AI tools. And let’s be honest — if you’re an exec balancing budgets and juggling board pressure, skipping a salary for a subscription might sound pretty tempting.

But there’s a bigger story here. The AI jobs crisis isn’t a single event. It’s a slow burn. A thousand small shifts — fewer freelance briefs, fewer junior hires, fewer hands on deck in creative industries — that are starting to add up.

As Merchant puts it:

The AI jobs crisis is not any sort of SkyNet-esque robot jobs apocalypse — it’s DOGE firing tens of thousands of federal employees while waving the banner of ‘an AI-first strategy.’” That stings. But it also feels… real.
Brian Merchant, Journalist
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So now we have to ask: if companies like Duolingo are laying the groundwork for an AI-powered future, who exactly is being left behind?

Are we ready to admit that the AI jobs crisis isn’t coming — it’s already here?

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