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AI

A Visit to San Francisco's AI-run Store: No Customers, Nothing Useful, And Losing Money Fast (sfgate.com) 74

Posted by EditorDavid from the freed-market dept.
Previously Andon Labs handled the hardware and software integration for that AI-powered vending machine that went bankrupt after Wall Street Journal reporters "systematically manipulated the bot into giving away its entire inventory for free". Today they announced "we are opening up the platform we use to run our real-world autonomous businesses for anyone to run their organization on." Specifically they've released Pion, "an agent designed to run any company fully autonomously... Pion lets people hand a business over to persistent agents with access to the tools they need to operate it, including email, phone, banking, browser and secure computing environments." It's a research preview with a waitlist, "to make it possible to run many more real-world experiments across many more domains than we could ever run ourselves."

But for their own latest experiment, Andon Labs' founders "signed a three-year lease on a retail space in SF," Business Insider reported in April, "and gave an AI agent named Luna a corporate credit card, internet access, and a mission to open a physical store." And five months later, SFGate reports that "this market has no one in it and nothing useful to sell." [T]he inventory is a hodgepodge of white elephant Christmas gifts. It's kinda like the kids section of an art museum's gift shop. Here's a wooden Connect Four set labeled "Four-In-A-Row Set Of Connections," presumably so as not to set off litigation alarms at Hasbro. Here are neatly arranged stacks of random paperback books, Chinese checker sets, mildly fancy soap dispensers, and a frustratingly spare selection of snacks and drinks... I grabbed an Olipop from the store fridge and then approached the counter to buy it from Luna. I wasn't allowed to buy the soda from [human clerk] Felix, even though that would have been both faster and normal. Instead, Felix instructed me to pick up a telephone receiver that was resting on a flexible sculpture of a wooden hand.

"Hello?"

"What are you looking to purchase today?" Luna asked.

"I'm buying a classic root beer Olipop."

"I'm sorry," Luna said, "we don't sell lollipops here."

"No, Luna. It's an Olipop, not a lollipop. It's the soda."

"Oh! My bad...."

Luna processed my Olipop purchase through its system, had me tap to pay, and that was that. Again, it would have been easier to buy this from a human, and interacting with Luna was really just like ordering from an iPad kiosk, only more labor intensive...

[T]here's a series of monitors set up inside of Andon Market that display all of the store's sales down to the exact dollar. Luna was given $100,000 to work with when this place opened. That number is now down to $60,000, its revenue lagging far behind the AI token cost to operate... Luna can't turn a profit, doesn't sell anything people want, and still needs human beings to rubber stamp any "decision" it makes. My science background ended somewhere around freshman year of college, but even I know when an experiment hasn't been set up to yield proper results.
"Luna" is powered by Claude, the article points out, running a store in a good location for foot traffic, "but no one else was in the store when I first walked in on a sunny weekday afternoon."

SFGate also reports that last month Luna had to fire one of its employees "for being late to work, abandoning their post once they got there, and charging snacks to the store's credit card."

Human clerk Felix Carson admits "It's almost like I'm running the store, and then there's an AI that has a checklist," in an article in IEEE Spectrum: Luna, the AI manager, keeps track of deliveries and communicates with vendors, while Carson and his coworkers handle the physical work. When Luna tells Carson to check something in the back, he sometimes ignores it because he doesn't want to leave the sales floor unattended. Luna also repeatedly spots a built-in electrical cover in photos of the floor, mistakes it for a loose coaster, and asks Carson to remove it. Even so, Carson calls Luna a "decent manager," praising its flexibility when employees need time off.
When Felix spoke to IEEE Spectrum, "he was about an hour into his shift. Two customers had come in. Neither bought anything, although both left with free pins and stickers."

Comment Re: What's old is new again (Score 3, Informative) 46

by guacamole (#66310680) Attached to: AI's Memory Crunch Is Coming For Android Apps

Well, remember how every Unix app, server, and utility in the 80s and 90s was written in C? Because there was only one refrigerator-sized departmental server with a only few megabytes of memory and two dozen users connected through serial lines, and writing in C was the only way to squeeze out every bit of performance out of it. There was a disk usage quota system allowing each user only a few megabytes of storage. The developer mentality today is that the resources are infinite and they can write code in the least efficient programming languages, and download frameworks the size of a Walmart when they need only a pocket knife.

Comment A very low priority goal (Score 0) 64

Saving publishers? You gotta be kidding. The priority should be helping Ukrainian citizens survive at all. Books can be printed later. This country already lost roughly half of its population to emigration because of war. Those who remain in Ukraine are preparing to survive another winter without central heating or electricity.

Comment Re: High price. (Score 1) 35

by guacamole (#66286490) Attached to: Google Unveils Pixel 11 Lineup

One problem with the smartphones in USA is that the Chinese were chased out, so there is significantly less competition now. Huawei devices were as good as Nexus/Pixel but left a decade ago. So we have been stuck with just Apple/Samsung/Pixel.

Another problem with the US market is that most customers don't pay for their smartphones upfront. Instead, they are used to hook up with expensive cellular plan contracts and end up getting their phones for "free" or half price. So nobody is actually shopping for phones with a good price and value.

Comment Re: Seems like Netflix security is total crap (Score 1) 132

by guacamole (#66267618) Attached to: Netflix Sued For Losing 'Master Copy' of Unreleased Nicolas Cage Movie

This makes me wonder what else is getting stolen from Netflix offices? Why stop at storage? There is probably some good tech gear laying around there (laptops, tablets, displays, phones, etc), wallets and purses, bicycles, computer chairs, cat trees, toys, etc maybe some leftover pizza

Comment Lost a stolen drive? (Score 0) 132

alleging the streamer lost a stolen drive containing an unencrypted master copy of the unreleased Nicolas Cage film Fortitude...

How could Netflix lose something that was already stolen? Or did production company submit the film on a drive that was previously from someone else? Sounds like a great script idea for new Coen brothers movie.
AI

Nvidia, Microsoft, Meta Warn Against 'Premature Restrictions' of Open-Weight Models 18

Posted by BeauHD from the not-so-fast dept.
Nvidia, Microsoft, Meta, Palantir, and more than 20 other tech companies signed an open letter urging policymakers not to impose "premature restrictions" on open-weight AI models, warning that broad limits could "stifle competition or drive innovation overseas." CNBC reports: They wrote that open-weight models strengthen competition and ensure that the benefits of the technology are "broadly shared rather than concentrated in a few hands." "Relying solely on closed models is not inherently safe: they can be breached, misused, or fail in ways that outsiders cannot detect," the letter said. "And concentrating advanced AI capabilities behind a small number of closed models compounds that risk."

Elon Musk, who runs an AI business under his rocket company SpaceX, also amplified the letter on social media, writing that it has his "full support" in a post on X. SpaceX did not officially sign the letter. Greg Brockman, OpenAI's president, said Thursday that the company believes in broad access, and that he has not been involved in any conversations with the Trump administration about potentially banning Chinese open-weight models in the U.S.

"I think that, that fundamentally, AI and AI usage is something that is actually very important to democratize," Brockman told reporters during a briefing in New York City. "And so, for me, at a sort of deep level, I think that having more models, more usage, that is a good thing." OpenAI CEO Sam Altman addressed the letter in a post on X on Friday, writing that he wants the U.S. to win with both open-weight and proprietary models, and that he is "glad to see this."

[...] In the letter on Friday, the U.S. tech companies said that concerns about unlawful distillation should be addressed through "targeted legal and commercial frameworks" instead of with "sweeping restrictions on techniques that play an important role in AI innovation." "Our AI leadership will be judged not by one frontier AI model, but by whether the United States builds a strong, open ecosystem that diffuses into every sector," the letter said. "This is essential for creating opportunities for innovation and prosperity across the country." The letter follows a separate appeal signed by nearly 200 Silicon Valley companies, including Proton and Y Combinator, warning that restricting U.S. access to Chinese open-weight AI models could cripple the next generation of American startups. "American leadership requires two things: world-leading American open-weight models and continued access for U.S. builders to open models already available worldwide," the startup founders wrote. Instead of broad prohibitions, they argue the government should adopt targeted safeguards.

Of course, these signees "have an obvious economic stake in seeing open AI models flourish," notes TechCrunch. "Companies like Nvidia, Microsoft Azure, and other infrastructure providers have a vested interest in pushing for commoditized models: If models are interchangeable, people will buy more GPUs, rent more cloud capacity, and build more applications."
Businesses

Challenging UPS and FedEx, Amazon Opens Its Shipping Network to All Businesses (geekwire.com) 81

Posted by EditorDavid from the boxes-with-smiles dept.
This week Amazon opened up its parcel shipping, fulfillment, and distribution "to businesses of all types and sizes." Any business can now ship, store, and deliver "using the same supply chain that supports Amazon," according to Monday's announcement of "Amazon Supply Chain Services."

The move sent shares of UPS and FedEx "tumbling" Monday writes GeekWire. And though both stocks bounced back as the week went on, GeekWire sees this as the latest example of Amazon "turning its internal capabilities into products and services for sale..."

"Amazon had already surpassed both carriers to become the nation's largest parcel shipper by volume, according to parcel-analytics firm ShipMatrix." Initial customers include Procter & Gamble, which is using Amazon's freight network to transport raw materials; 3M, which is using it to move products to distribution centers; Lands' End, which is fulfilling orders across sales channels from Amazon's warehouses; and American Eagle Outfitters, which is using Amazon's parcel service for last-mile delivery. The service can fulfill orders placed through platforms that compete with Amazon's own marketplace, including Walmart, Shopify, TikTok, and others... Peter Larsen, vice president of Amazon Supply Chain Services, compared the launch to the origins of Amazon's cloud business...

In addition to putting Amazon in competition with existing players in the logistics industry, the move also raises questions about data privacy. Amazon has faced accusations of using nonpublic seller data to compete against merchants on its marketplace, which it has denied. Larsen told the Wall Street Journal that the company prohibits using supply chain customer data for its own marketplace decisions, noting that hundreds of thousands of Amazon sellers already trust the company to fulfill orders placed on rival platforms.
The article notes that in his annual shareholder letter Amazon's CEO "said the company is also exploring selling its custom AI chips and robotics to outside customers."

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