Business
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.
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.
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.
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.
Comment and Share:
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.
You may also like:
- To learn more about Amazon’s hiring of Covariant founders, tap here.
