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This is according to a detailed internal document obtained by Business Insider that reveals a host of new information and insights about Amazon's book business and the broader publishing landscape. Reliable data on this industry is limited or tightly controlled, so it's sometimes difficult to get handle on the scope of the book business. "Monopoly power"Amazon's book business has drawn antitrust scrutiny over the years. The company doesn't publicly disclose book sales, nor does it give a revenue breakdown of each retail category. The US accounts for over half of the salesThe document reveals a few staggering numbers that show how big Amazon's book business is.
Persons: , John Warren, George Washington University's, doesn't, Lindsay Hamilton, Noble, Warren, Hamilton Organizations: Service, Business, Amazon, Federal, American Booksellers Association, FTC, Justice Department, BI, GMS, Barnes, Costco, Pew Research Center, George Washington University Locations: Germany, Japan, France, Italy, Spain, Australia
Microsoft is likely to be unhappy when it discovers that its arch rival Amazon is leaning hard on GitHub for AI training data. "Our LLMs are trained on data from a variety of sources, including licensed and proprietary data, open-source datasets, and publicly available data where appropriate. It also said Amazon employees should create a "classic personal token," not a "fine-grained personal token," when signing up. Tech companies, hungry for even more training data, are also granting themselves new permissions to use a lot more of consumers' information. Though Amazon's legal team has approved the GitHub data scraping workaround, the move could put Amazon in a tricky position.
Persons: , Rohit Prasad NurPhoto, Rohit Prasad, Amazon, Amazon's, Andy Jassy, Prasad, Matthew Butterick, Joseph Saveri, Joseph Saveri's, Butterick, Copi­lot Organizations: Service, Business, General Intelligence Group, Amazon, Microsoft, Google, Meta, GitHub, News Corp, Tech, Alexa Locations: GitHub
The company had to quell those concerns with a blog post denying this. But some Adobe employees are still not happy with the response, and they are calling for improved communication with customers. According to screenshots of an internal Slack channel, obtained by Business Insider, Adobe employees complained about the company's poor response to the controversy and demanded a better long-term communication plan. Advertisement"We've never trained generative AI on customer content, taken ownership of a customer's work, or allowed access to customer content beyond legal requirements. Some employees applauded Adobe's effort to use language that is easier to understand in the blog post.
Persons: , Adobe, Slack, We've, Scott Belsky, Belsky Organizations: Service, Business, Adobe, IBM, Software, YouTube
Amazon withdrew from investing in Figure, an AI-robotics startup valued at $2.6 billion. Figure raised $675 million in February from investors including Microsoft, OpenAI, Nvidia, and Jeff Bezos. Figure committed to using Microsoft's Azure cloud service when it announced the funding round. In February, Figure announced it raised $675 million from investors including Microsoft, OpenAI, Nvidia, and former Amazon CEO Jeff Bezos. At the time, a number of publications reported that Amazon's Industrial Innovation Fund was one of the investors in Figure.
Persons: Jeff Bezos, Organizations: Amazon, Microsoft, Nvidia, Service, Innovation, Business
Read previewAmazon Web Services made major changes to its data-deletion process after Apple alerted the cloud giant about a potential security risk, according to an internal document obtained by Business Insider. However, the AWS cloud services involved store information such as software, text, audio, video, images, resource identifiers, metadata tags, and permissions. These people asked not to be identified discussing a sensitive cloud security issue. Security is a top priority for AWSAmazon Web Services CEO Matt Garman AmazonFor AWS, security has always been a top priority. The AWS security team suggested taking actions to "meaningfully improve" the quality of the data-deletion process and "define a clear guideline" around it.
Persons: , It's, Patrick Neighorn, Neighorn, didn't, it's, Justin Cappos, Fabrice Delhoste, Ken Elefant, Matt Garman, Brad Smith Organizations: Service, Services, Apple, Business, Amazon, AWS, BI, Employees, NYU, Sorenson Ventures, Security, Web, US Homeland Security, Microsoft, Committee
Rainier...)," Larsen wrote in the email, referring to a snowcapped peak near Seattle, where Amazon is headquartered. Months later, Amazon struck a deal with Shopify that put Buy with Prime on the Shopify merchant marketplace, extending the tool's reach with sellers. Advertisement"When merchants push that metric to >75%, it'll be a good indication that we've found product-market fit," Larsen wrote. To use Buy with Prime, Amazon charges merchants a 3% Prime service fee in addition to fulfillment fees and payment processing fees. However, Piiparinen said the 3% service fee is less than the referral fees merchants pay when selling on Amazon.com.
Persons: , Craig Leslie, Leslie, It's, Peter Larsen, Andy Jassy, Larsen, Santos, Anders Piiparinen, who's, doesn't, Piiparinen, Amazon's, Smart, ZOA, GreatCircleUS.com, Madeline Stone Organizations: Service, Amazon, Business, Bean Coffee Company, Shoppers, Ekrin Athletics, BI, Prime Locations: . Rainier, ., Seattle, Piiparinen, mstone@businessinsider.com
"I'm not aware of anyone using AWS chips in any sort of large volumes," Rasgon told Business Insider, referring to Amazon's AI chips. This time, the idea is to avoid paying for expensive Nvidia GPUs, while still providing cloud customers with powerful AI services. An obvious response to this would be to have cloud customers use Amazon's AI chips instead. However, some of the largest AWS customers have not been willing to use these homegrown alternatives, the documents said. For example, AWS's AI chips still have "compatibility gaps" in certain open-source frameworks, making Nvidia GPUs a more popular option.
Persons: , Stacy Rasgon, Bernstein, I'm, Rasgon, Adam Selipsky, Jensen Huang, Andy Jassy, Inferentia, Trainium, Omdia, Snowflake's, Sridhar Ramaswamy, Eóin Noonan, CUDA, Ramaswamy, James Hamilton, Jassy, Gartner, Huang Organizations: Service, Microsoft, Google, Business, Services, Nvidia, Intel, Amazon, NVIDIA CUDA, Netflix, Neuron, AWS, NVIDIA, Amazon VP, James Hamilton Amazon, BI Locations: CUDA, Toronto
The in-house AI chip efforts have yet to make a major dent in Nvidia's grip on the market. 'Parity with CUDA'Internally at Amazon, Nvidia's CUDA platform is repeatedly cited as the biggest roadblock for the AI chip initiative. AdvertisementAn obvious response to this would be to have cloud customers use Amazon's own AI chips instead. AdvertisementFor example, AWS's AI chips still have "compatibility gaps" in certain open-source frameworks, making Nvidia GPUs a more popular option. Don't count Amazon outDespite Amazon's AI chip struggles, the effort seems to have caught the attention of Nvidia's CEO Jensen Huang.
Persons: , Bernstein, Stacy Rasgon, I'm, Rasgon, Adam Selipsky, Jensen Huang, Andy Jassy, Inferentia, Trainium, We're, Snowflake's, Sridhar Ramaswamy, Eóin Noonan, Ramaswamy, James Hamilton, Jassy, Gartner, Amazon's, Huang Organizations: Service, Microsoft, Google, Business, Nvidia, Intel, Amazon, BI, Annapurna, NVIDIA CUDA, Netflix, Neuron, AWS, Amazon VP, James Hamilton Amazon, Amazon SVP Locations: Inferentia, Toronto, Canada, CUDA
These days, this may happen when a big tech company invests in an AI startup, and then that startup buys cloud and AI services from the big tech company. These arrangements are called "round tripping" because the money invested comes right back in the form of cloud spending. When Amazon Web Services invested $4 billion in Anthropic, the AI startup agreed to use AWS as its "primary cloud provider." In recent years, cloud spending growth has slowed as some customers try to save money in the midst of a lackluster economy with high inflation. An Amazon spokesperson declined to say whether AWS revenue numbers include cloud spending by Anthropic or not.
Persons: , what's, Rishi Jaluria, GCP, Jaluria Organizations: Service, Business, Amazon Web Services, Google, Microsoft, OpenAI, Oracle, RBC Capital, RBC, Amazon Locations: Anthropic
Read previewAt an October all-hands meeting, an Amazon Web Services employee asked executive Matt Garman about the company's difficult work environment. The people who spoke with BI about Garman asked not to be identified so they could freely discuss his abilities. One AWS employee pointed out to BI that Amazon Q was months behind the launch of Microsoft's AI Copilots. Associated PressOutside of AI, AWS has struggled in its core startups and small business segments, failing short of sales targets last year, as BI previously reported. Those customers are particularly important for AWS because the company built its early business by embracing that market.
Persons: , Matt Garman, Garman, It's, Adam Selipsky, Selipsky, Andy Jassy, Matt, Amazon's, Patrick Neighorn, He'd, We're, Neighorn, it's, Claude, AWS's, let's Organizations: Service, Amazon Web Services, AWS, Business Insider, Employees, Business, Amazon, Stanford, BI, Mizuho Securities, Q, Cohere, Mistral, Google, Associated Locations: Anthropic
Adam Selipsky is out at AWS
  + stars: | 2024-05-14 | by ( Ellen Thomas | Eugene Kim | ) www.businessinsider.com   time to read: +2 min
Read previewAmazon Web Services CEO Adam Selipsky is stepping down from his role leading Amazon's cloud unit, according to an internal memo viewed by Business Insider and later posted to Amazon's website. Matt Garman, currently senior vice president of sales, marketing, and global services for AWS, will assume the CEO role. This story is available exclusively to Business Insider subscribers. AdvertisementSelipsky, who first worked for AWS between 2005 and 2016, was tapped by Jassy to lead the unit in 2021. Selipsky led AWS during the height of the pandemic when the shift to remote work spurred an unprecedented spike in demand for cloud services.
Persons: , Adam Selipsky, Matt Garman, Matt, Andy Jassy, Jassy, He'll, Selipsky, Ellen Thomas, Eugene Kim Organizations: Service, Business, AWS
Selipsky's three years as AWS CEO were marked by mixed results. AdvertisementHe steered through some of the cloud business' slowest growth rates, largest layoffs, and biggest challenges in the artificial intelligence space. AdvertisementAmazon's generative AI service Bedrock was delayed after originally being scheduled to launch in the fall of 2022, the person said. Garman was once considered a frontrunner to replace former AWS CEO Andy Jassy in 2021 when Jassy took over as Amazon's CEO. Some insiders referred to Selipsky as "just a sales guy" and "uninspiring," as the cloud leader faced unprecedented competition in generative AI.
Persons: , Adam, Selipsky, shakeup, Patrick Neighorn, Matt Garman, Garman, Andy Jassy, Jassy, Amazon, Ashley Stewart Organizations: Service, Web Services, Business, AWS, Amazon, BI, Rivals Microsoft, Google
The AI company basically planted a flag in the sand emblazoned with two words aimed at its Big Tech rivals: your move. The newest version of the AI chatbot, powered by OpenAI's new flagship AI model GPT-4o, can reason across audio, vision, and text in real time. AdvertisementAll the while, the voice assistant maintained a lighthearted and cheerful tone. In another instance, ChatGPT said the researcher was making it blush when he said he was talking about how "useful and amazing" ChatGPT was. Meanwhile, Amazon had plans to release an "Alexa Plus" paid version of the voice assistant that's powered by generative AI, Business Insider's Eugene Kim first reported.
Persons: , Sam Altman, Mira Murati, Scarlett Johansson, Spike, Mark, ChatGPT, OpenAI, Alexa, Apple's Siri, Siri, There's, Insider's Eugene Kim Organizations: Service, Big Tech, Business, Warner Bros, Google, Apple, Amazon Locations: ChatGPT
In the past, he set Signal messages to automatically delete after one week. "I never would have used Signal under any circumstances with disappearing messages on or off to discuss any complicated business issues. Associated PressJEDI ContractThe FTC lawyer also showed Bezos a log of Signal messages that were used with the disappearing message feature activated. He said he "did not" know Signal messages were covered by those legal guidelines. The company was "unable to determine" why that's the case, but said it's possible Signal messages were deleted when they got new phones.
Persons: Jeff Bezos, Bezos, Mike Hopkins, , Andy Jassy, Amazon's, Jassy, Donald Trump, there's, I'm, Jeff Blackburn, Hopkins, Blackburn, Blackburn wasn't, Blackburn's, Max Organizations: Federal Trade, Amazon, Business, FTC, Associated Press, Defense Department, Microsoft, Department of Defense, Blackburn, Bezos Locations: Bezos, Blackburn
Big Tech's big green card problem
  + stars: | 2024-05-02 | by ( Hugh Langley | Kali Hays | Eugene Kim | ) www.businessinsider.com   time to read: +8 min
Big tech companies have pulled back on PERM applications, often the first step to a green card. AdvertisementBig tech companies have backed off green card applications in a big way because the process has become tougher and there's less competition for talent. "If some of these people say 'yes, I'm interested,' then you're out of luck with the green card application." So this makes the green card process potentially easier outside of places like the Bay Area and NYC, she explained. Are you a foreign tech worker struggling with a green card application?
Persons: Ava Benach, , Googlers, Benach, It's, Hugh Langley, Kali Hays, Eugene Kim Organizations: Big, Google, Service, Department of Labor, Washington DC, Amazon, Business, Meta, Companies, Citizenship, Immigration Services, Supply, Bay, Labor, Area, Big Tech, US, Department, Labor Department, Software Engineer, Research Locations: PERM, Silicon Valley, New York City, Washington, khays@businessinsider.com
Read previewExpect a lot more talk of generative AI at Amazon cloud computing events this year. "Up to 80% of all Global Summit sessions will be sourced from 2023 re:Invent sessions tagged to Gen AI." The new directive shows how Amazon is going to extraordinary lengths to promote its AI prowess, at a time when interest in generative AI is skyrocketing. On Tuesday, Jassy said Amazon is on pace to generate "multi-billion" dollars in revenue this year from its generative AI offerings. Generative AI has already been accounting for a larger share of Amazon's public comments.
Persons: , Patrick Neighorn, we've, Andy Jassy, Jassy, It's Organizations: Service, Services, Business, AWS, Amazon, Global, Microsoft, Google, Meta
Amazon has suspended new US Green Card sponsorships for foreign workers until the end of 2024. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. AdvertisementAmazon won't be sponsoring any new US Green Cards for foreign workers for the rest of this year, a sign of sustained weakness in the tech job market. It aims to check that admitting foreign workers into the country doesn't impact job opportunities, wages and working conditions of US workers. This story is available exclusively to Business Insider subscribers.
Persons: Organizations: Amazon, Green, Service, Cards, Business, US Department of Labor Locations: PERM
Amazon's Prime membership hit a record 180 million US shoppers in Q1, according to new estimates. Now a record 75% of Americans use the subscription service. AdvertisementJust over a year ago, Amazon's Prime subscription service looked like it had plateaued. Prime reached a record 180 million US shoppers in the first quarter, data from Consumer Intelligence Research Partners suggests. This story is available exclusively to Business Insider subscribers.
Persons: , It's Organizations: Amazon's, Service, Consumer Intelligence Research Partners, Business
Microsoft significantly expanded its data-center capacity recently and plans to ramp up growth to astounding levels going forward, according to an internal document obtained by Business Insider. Since July 2023, the start of Microsoft's latest fiscal year, the company delivered more than 500 megawatts of new data-center capacity, the document disclosed. This requires Microsoft to deliver more than 200 megawatts in data-center capacity every month. "This is a very large data-center capacity." Microsoft's GPU footprint expanded into 39 additional data centers in this period, and the company now has "AI clusters" live in 98 locations globally.
Persons: Shaolei Ren, Ren Organizations: Microsoft, Business, Operations, Innovation, OpenAI, University of California, BI Locations: Riverside, Hong Kong
Since July 2023, the start of Microsoft's latest fiscal year, the company delivered more than 500 megawatts of new data center capacity, the document revealed. The rise of generative AI and huge foundation models is fueling a new data center boom. Microsoft's 5 gigawatts of installed data center capacity is equivalent to Hong Kong or Portugal's annual energy consumption, according to Shaolei Ren, an electrical and computer engineering professor at UC Riverside. This will require Microsoft to deliver more than 200 megawatts in data center capacity every month. "This is a very large data center capacity."
Persons: Shaolei Ren, Ren Organizations: Microsoft, Business, OpenAI, UC Riverside, BI Locations: Hong Kong
Amazon has invested billions of dollars in Prime Video to secure original content and live-streaming rights. CEO confidenceIn Amazon's recent annual shareholder letter, CEO Andy Jassy showed his continued support for Prime Video. "We have increasing conviction that Prime Video can be a large and profitable business on its own," he wrote. Among the top "catalog quality issues" were incomplete or inconsistent titles, as well as a "Season Integrity" problem. Multiple posts about wrong movie titles on Prime Video can also be found on Amazon's forum and Reddit.
Persons: Amazon, Andy Jassy, Video's headcount, they're, Anthony Palomba, Palomba, It's Organizations: Amazon, Business, MGM, BI, Prime, Citadel, House, Amazon's, University of Virginia
NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. By the way, we're wrapping up voting for the championship matchup in our business, tech, and innovation bracket. In today's big story, we're looking at Amazon CEO Andy Jassy's letter to shareholders, which details the tech giant's plan in the age of generative AI . What's on deck:AdvertisementBut first, Amazon, AI, and a letter. The big storyAmazon in the AI ageMichael M. Santiago/Getty Images; Chelsea Jia Feng/BIThe generative AI revolution is coming, and Amazon wants in on the ground floor.
Persons: , We've, Andy Jassy's, Michael M, Chelsea Jia Feng, Andy Jassy, Ana Altchek, Jassy, that's, Andy Jassy Mike Blake, Eugene Kim, Jassy's, Phillip Faraone, Gregor Fischer, Noam Galai, Here's, it's, Morgan Stanley, Ben Bergman, Rebecca Zisser, Adam Neumann, Neumann, Samantha Lee, Bon Appétit, Dan DeFrancesco, Jordan Parker Erb, Hallam Bullock, George Glover Organizations: Business, Service, Amazon, Getty, AWS, Bridgewater Associates, Pfizer, Reuters, Prime, TechCrunch, Games, New York Times, Visual China, BI, JPMorgan Chase, Citigroup, Coachella Locations: Wells Fargo, New York, London
NewJeans, one of the biggest K-pop acts, has asked a federal court in California to order Google to release the identity of the person behind a YouTube account that the members say is spreading defamatory statements about them. The group said that a YouTube user with the handle @Middle7 made the statements in dozens of videos that were viewed more than 13 million times, according to the court filing. The group’s lawyer, Eugene Kim, wrote that the account had also engaged in “name-calling or other mocking behavior” targeting NewJeans. The move, made on March 27, is the latest example of K-pop stars responding to the pressures they face from the fervid online fan culture in South Korea. The request, if granted, would allow the group to sue the YouTube user in South Korea for defamation and insult, which are criminal offenses in the country.
Persons: Eugene Kim, ” Ador Organizations: Google, YouTube Locations: California, South Korea
Read previewAnother robotics startup has raised a large amount of money, signaling a rebound in investor appetite in the space. Collaborative Robotics, an automation startup founded by former Amazon Robotics chief Brad Porter, just raised $100 million in a round led by General Catalyst. The latest round values Collaborative Robotics at more than $500 million, Porter told Business Insider. Founded in 2022, Collaborative Robotics has 35 employees and deployed its first product earlier this year. Mayo Clinic, which also invested in Collaborative Robotics, is one of the early customers, he added.
Persons: , Brad Porter, General Catalyst, Porter, hasn't, Pitchbook, There's Organizations: Service, Robotics, Amazon Robotics, General, Bison Ventures, Industry Ventures, Lux Capital, Sequoia Capital, Khosla Ventures, Business, Physical Intelligence, Mayo Clinic, Venture
Amazon is laying off hundreds of employees in its cloud division, emails obtained by BI show. The latest round of job cuts will impact employees in its cloud division, Amazon Web Services, internal emails seen by Business Insider show. "We didn't make these decisions lightly, and we're committed to supporting the employees throughout their transition to new roles in and outside of Amazon. Earlier this year, Amazon also cut hundreds of jobs across its Prime Video and healthcare units. AdvertisementA recently obtained internal HR document from last year showed Amazon placed more employees on performance-improvement plans while carrying out the mass layoffs.
Persons: , Matt Garman, we're, Geekwire, Amazon's Organizations: BI, Amazon, Service, Amazon Web, Business, Global Services
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