barns and noble

Barnes & Noble Workers Organizing Union Drive For The Largest Bookstore Chain In The US 

Workers at Barnes & Noble, the largest bookstore chain in the US, are preparing for a nationwide union drive after six outlet stores voted to organize throughout the past year, according to reports

According to the workers, who are demanding better pay and working conditions, “many more” stores will move to unionize.

Locations that already have unionized have made multiple claims that management has delayed attempting contract negotiations, and James Daunt, the CEO, allegedly went on a months-long campaign to encourage employees not to vote in favor of organizing. 

“He would come in and essentially try to talk us out of unionizing. The big argument against us unionizing was it would make his life harder, which he would repeat several times. It wasn’t very successful,” said Jessica Sepple, a worker at Barnes & Noble’s flagship New York City store in Union Square.

Daunt disputed the claims of negotiating delays, and stated he agreed with the workers on “the fundamentals” of their demands while warning of “potential upsides and downsides to a union.”

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The store voted 76-2 in favor of unionizing last summer. Barnes & Noble has around 600 stores across the US. The business itself has been on a decline in recent years, and Daunt, who became CEO in 2019, has said he’s worked hard to turn around the business. 

Sepple said that their “purpose for unionizing is to get some recognition for the dignity of workers, and having sat at the table and currently in negotiations with Barnes & Noble, it is disappointing that Barnes & Noble has not treated this as if that dignity is deserved.”

Sepple also discussed that workers at the Union Square location have experienced lagging wages, safety concerns with ladders and general book storage, aggressive customers, and being given duties that the job initially did not entail, according to The Guardian

“If you’re good at your job, you’re just going to get more work. It takes a lot of knowledge, research, and a love of reading and books to make it happen, and oftentimes I’ve found the company tends to coast on that.”

In Brooklyn’s Park Slope, workers won a union election in July 2023. Sydul Akhanji, a worker at the store for two years, said he wants to work for the bookstore chain for a long time, but the low pay has been a major downside. He stated “if the company wants to build itself around knowledgeable booksellers, its workers need to be able to afford rent and food.”

Akhanji also alleged that Daunt attempted to deter the workers at Park Slope from unionizing. He claimed that the CEO “just went on and on about how it’d be hard and make all his plans complicated, if we unionized, and how he has a vision for us, so please, just don’t unionize right now.”

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Workers have also claimed that all contract negotiations are slowed down because executives are sending them to their company lawyers, who are typically not present during the discussions and negotiations. In some of the New York stores, management has been negotiating separately from the workers as well. 

“We live in the most expensive city in the country, and our starting wage until very recently was minimum wage, and it’s just not sustainable,” Esther Rosenfield, a barista at the Barnes & Noble in Manhattan, said.

Barnes & Noble workers in Bloomington, Illinois heard about the union voting in New York and decided to hold their own. In November, they unanimously voted to unionize. 

“James Daunt did a conference call to the store himself saying a vote for the union is a vote against him. The issues we’re facing are companywide. We’re all facing the same issues. If one small store in the midwest can unionize, then anyone can,” said senior bookseller, Zane Crockett.

Daunt stated: 

“My argument to the booksellers has been very simple: we have no disagreement with the fundamentals of what is being asked for, and indeed have pivoted the company precisely to achieve them. Only a successful business, after all, can deliver the investments necessary to improve pay and the physical condition of our stores.”

“In this endeavor, I see both potential upsides and downsides to the addition of a union. The most obvious potential upside is to have a clearer articulation of bookseller aspirations. Equally, there are potential downsides, notably if it causes unnecessary confrontation between ‘management’ and ‘workers’ and the fact that low-paid booksellers will have to pay significant dues to the union, all other things being equal reducing their pay.”

macys

Macy’s To Downsize And Close 150 Stores 

Macy’s is making some major changes to keep their 150+ year brand relevant and alive during a time where retail shopping is constantly changing. For starters, the company will be downsizing and getting a new, smaller, more luxurious look, according to reports

Macy’s will be closing 150 underperforming stores. They’re planning on closing 50 by the end of 2024, and the remaining 100 over the course of the next few years. The ultimate goal is to have just 350 Macy’s stores by 2026. 

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The company will also be focusing more on its brands Bloomingdale’s and Bluemercury, as both have remained successful and have outperformed the Macy’s brands. They’re planning on opening more, smaller versions of those stores within the next several years. 

The general plan shows that Macy’s is accommodating wealthier shoppers through their more luxurious brands. Consumer trends show that shoppers are choosing smaller stores outside of shopping malls, so Macy’s will also be building 30 smaller stores within the next two years that won’t be inside of malls. 

Macy’s stock price has dropped 75% since its peak of $73 a share back in 2015. Since that point they’ve closed around 300 stores, which is almost a third of its locations. They still operate around 700 stores across all of their brands. 

With the downsizing, Macy’s also announced that it was laying off around 2,350 employees; about 3.5% of its total workforce.  

“We believe paring down the Macy’s store base to a more manageable (and profitable) size is prudent given the general structural shift towards online spending” and the shift away from department stores,” Dana Telsey, a retail analyst, said. 

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New Macy’s CEO Tony Spring, who was previously the CEO of Bloomingdale’s, said in a statement that this will be a “bold new chapter” for the brand, and was developed through extensive market research to “reinvigorate” the Macy’s brand.  

“We are making the necessary moves to reinvigorate relationships with our customers through improved shopping experiences, relevant assortments and compelling value,” Spring said in a statement, explaining that Macy’s will also be improving their digital marketplace.

They’ll also be downsizing the products sold in store as a means of focusing on brands and items that customers actually want. 

“That should lead to sustained profit growth over time,” Spring stated.

Over the next three years, Macy’s said it will open 15 new Bloomingdale’s stores and 30 new Bluemercury stores, with other plans to remodel 30 existing Bluemercury stores. 

“The Bloomingdale’s expansion can work as there are several strong luxury markets where the chain is not represented,” Neil Saunders, an analyst at GlobalData Retail, said.

satellite

Former Disney Star Bridget Mendler Is Launching A Satellite Data Startup 

Former Disney star Bridget Mendler, known for appearing in programs like “Good Luck Charlie,” “The Clique,” “Lemonade Mouth,” and more, is not embarking on a new venture that will change how satellite data moves from space back down to Earth. 

Mendler has spent the past several years gaining various degrees and studying at the Massachusetts Institute of Technology as well as Harvard Law School. Mendler spoke to CNBC about her new career in the space industry as CEO of Northwood Space, a startup based in El Segundo, California. She began this journey after “falling in love with Space law” throughout her educational journey. 

“The vision is a data highway between Earth and space. Space is getting easier along so many different dimensions but still the actual exercise of sending data to and from space is difficult. You have difficulty finding an access point for contacting your satellite.”

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According to Mendler, Northwood will mass produce ground stations, which are normally large with circular antennas that connect to satellites in space. 

Northwood is also already attracting high-profile venture investors with around $6 million in initial funding. Some of these investors include the Founders Fund. Andreessen Horowitz, and Also Capital. 

Besides Mendler, Northwood has two other co-founders, the startups Chief Technology Officer, and her husband Griffin Cleverly, as well as head of software Shaurya Luthra. 

Mendler told CNBC that the name “Northwood” comes from a lake in New Hampshire, where she was with her family during the Covid-19 pandemic when the idea for the company came to her. 

“While everybody else was making their sourdough starters, we were building antennas out of random crap we could find at Home Depot … and receiving data from [National Oceanic and Atmospheric Administration] satellites.”

“For me, why the ground-side matters is because it actually is about bringing the impacts of space home to people,” Mendler said.

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Cleverly told the news outlet that the general growth of the space industry proves that there is a “colossal” amount of data currently trying to travel back to Earth from various satellites. 

“We need an approach so that those companies can get the data down reliably in the quantities that they need,” Cleverly said. 

Northwood is working to start their initial operations quickly. They want to build ground stations with fast production and deployment flexibility as the priority, according to Luthra, who also said that they want to deliver these ground stations “within days, not months.” Luthra explained that this will make it easier for current satellite operators to avoid reconfiguring their networks. 

“If you want a detected antenna, you have to wait 18 months to get the antenna delivered, installed, and built out for you,” said Luthra. 

Northwood will also be reaching out to services who don’t want to spend the money to build their own ground station networks. 

“Traditionally, when I wanted an antenna or site to use, I would first have to ask, ‘Do you have availability, or is it already rented out to everyone else in the world?’ A lot of times very key sites were already rented out,” Luthra said.

Northwood is aiming to conduct their first connection test with a spacecraft currently in orbit later this year.

ai

40% Of Jobs Worldwide Could Be Affected By Artificial Intelligence, IMF Says 

According to the International Monetary Fund (IMF), around 40% of jobs globally could be affected by the rise in the use of artificial intelligence (AI). The IMF warned that these recent trends in AI could deepen the inequality that’s already present in the tech industry, and other industries where AI is being used. 

IMF chief Kristalina Georgieva published an official blog post on Sunday in which she called on government powers to establish effective “social safety nets and offer retraining programs” to counter the negative impacts of AI, according to CNN.

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“In most scenarios, AI will likely worsen overall inequality, a troubling trend that policymakers must proactively address to prevent the technology from further stoking social tensions,” she wrote.

Georgieva published the post ahead of the annual World Economic Forum meeting in Switzerland, where the topic of AI is set to be a big topic of conversation. 

Sam Altman, the chief executive of ChatGPT-maker OpenAI, and Satya Nadella, the CEO of Microsoft, will also speak at the Forum later this week and be involved in a debate being called “Generative AI: Steam engine of the Fourth Industrial Revolution?”

“As AI continues to be adapted by more workers and businesses, it’s expected to both help and hurt the human workforce,” Georgieva said in her blog, according to CNN.

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Georgieva also stated that the negative impacts of AI are expected to hit nations with advanced economies. 

She explained that in more developed economies, up to 60% of jobs could potentially be impacted by AI, but half of those jobs could benefit from the productivity benefits of AI. 

“For the other half, AI applications may execute key tasks currently performed by humans, which could lower labor demand, leading to lower wages and reduced hiring. In the most extreme cases, some of these jobs may disappear,” wrote Georgieva.

CNN reported that within emerging markets, places with sustained economic growth, 40% of jobs are expected to be impacted by AI. In lower income nations, places with developing economies, 26% of jobs are expected to be impacted by AI. 

“Many of these countries don’t have the infrastructure or skilled workforces to harness the benefits of AI, raising the risk that over time the technology could worsen inequality,” stated Georgieva.

credit card

Only Half Of US Credit Card Customers Believe They Can Pay Off Their Holiday Bills

According to the LendingTree Credit Card Confidence Index, a monthly survey published since 2018, only half of America’s credit card customers believe they’ll be able to pay off their December balance in full as we come out of the holiday season. 

The nationally representative survey received data from 1,514 cardholders, with only 51% stating they could pay off their December card balance this month; a 7% drop from the previous month. 

The current national credit card balance stands at $1.08 trillion which is a record high, and the average interest rate has reached 21%. This is the highest point recorded by the Federal Reserve in about 30 years of tracking, according to reports from USA Today

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“It was hard to imagine that growing debt, rising inflation and sky-high interest rates weren’t eventually going to take a toll,” said Matt Schulz, LendingTree’s chief credit analyst. 

In another periodic survey by Bankrate, it was shown that 47% of cardholders carried debt from month-to-month in mid-2023, which is up from 39% at the end of 2021. According to a TransUnion report for the third quarter of 2023, the average credit card holder has about $6,088 in debt. 

USA Today also reported that Wells Fargo Economics found that credit card debt is rising faster than any other household debt. 

“I think all this adds up to more people carrying more debt for longer periods of time, and unfortunately, I don’t see any of that reversing any time soon,” said Ted Rossman, a senior industry analyst at Bankrate.

The LendingTree index also showed that only 40% of women expressed confidence in their ability to pay off their card balance, compared to 64% of men. Across the five years of this specific survey, women have always voiced less confidence. 

Schulz theorized that “women may take a little bit more conservative approach to their finances. Men may be a little more confident than they should be, while women may be a little bit less confident than they could be.”

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Catherine Valega is a certified financial planner located in Boston who specializes in the finances of women. She offered the opinion to USA Today that female consumers may feel extra stretched out financially during the holidays due to the traditional roles that women filled in the household throughout history. That pressure is still very much present today, and has been passed down from generation to generation. 

“Women tend to want to give gifts, and they also tend to manage the stuff in their households. Who doesn’t spend more at year end,” Valega stated

Bankrate’s Rossman suggested that individuals with debt on a high-interest card should consider transferring some or all of their balance to a zero-APR card. Those cards typically give holders 15 months or longer of zero interest rates on their payments.

“If you use one of these properly, you can save a ton of money on interest,” Rossman said.

Valega stated: “Cardholders can also benefit from a few simple rules in using their cards. One is to charge only as much as you can afford to repay that month. Another is to set up automatic payments on the card. Better still if you can select the option to auto-pay the entire balance at month’s end.”

housing

Poverty Rates In The UK Have Been So Bad, They Soon May Reach Victorian Era Levels 

According to a new report from the Center for Social Justice, the most disadvantaged and impoverished people in the United Kingdom are no better off than they were 15 years ago. The report found a “yawning gap between those who can get by and those stuck at the bottom.”

The Center for Social Justice is an independent think tank whose earliest work has led to a reformation of Britain’s welfare system and the introduction of Universal Credit; a monthly government payment for individuals earning low incomes, according to CNN.

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The Center published the 300-page report as the latest evidence of how the UK’s economies lack of movement has made it nearly impossible to work through their poverty problem. The cost-of-living crisis in the UK in general has only made the impoverished population suffer more. 

“We have uncovered a nation of two halves. The general public for the most part can get by, and then there is this cohort of people whose lives are marked by family breakdown, physical and mental ill-health; who live in crime-ridden communities and experience multiple barriers to work,” said Sophia Worringer, deputy policy director at the Center for Social Justice, said Monday. 

The Center for Social Justice also warns that the UK is currently risking “sliding back into the two nations of the Victorian era, marked by a widening gulf between mainstream society and a poverty stricken underclass.”

During the Victorian age, the social divide in the UK was so severe that the working class was facing brutal living conditions, with little to no access to clean water, food, and sanitation, and they had no feasible ways of improving their lives and economic situations. 

Unfortunately, the report went on to state that the current poverty situation in the UK is reaching closer levels to the Victorian era due to addiction, joblessness, personal debts, and educational failures. 

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According to CNN, the study itself surveyed 6,000 people with more than half being from the UK’s poorest communities. The survey also used data from more than 350 small charities and experts across over 20 towns and cities in the UK. 

“For too many, Britain is broken and the gap between the haves and have-nots is in danger of becoming a chasm,” says the foreword to the report, signed by Mervyn King, a former Bank of England governor.

The report also discussed how the pandemic and the lockdown only made things worse, and had a “catastrophic effect on the nation’s social fabric.”

CNN said that “during lockdowns, calls to domestic abuse helplines surged 700%; mental health problems in young people spread from one in nine to one in six; severe school absence jumped 134%; and 1.2 million more people received welfare payments. Deaths from alcohol poisoning, which had been dropping before the pandemic, have also risen since the mass outbreak of Covid-19.”

“Those who are left behind are still reeling from the impact of the Covid-19 pandemic. Life for them never returned to normal and the scars of that time are still very deeply felt,” said Worringer.

Emirates

Emirates Places $52 Billion Order For 95 Boeing Aircraft Jets

Emirates Airline announced on Monday that it placed an order for 95 Boeing aircraft jets valued at $52 billion. This marks the first major deal of the 2023 Dubai Airshow.

According to reporting from CNBC, “the state-owned flagship Dubai carrier, a subsidiary of Emirates Group, is ordering 55 additional Boeing 777-9s and 35 of its 777-8s, bringing the airline’s total orders for the 777X wide-body jets to 205 units. 

It is also updating its order of Boeing 787 Dreamliners from 30 to 35, comprised of 15 787-10s and 20 787-8s.”

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Emirates also ordered 202 General Electric engines that will power the new 777X aircraft, which can fly up to 18 hours. 

The airline already operates the largest number of Boeing 777 aircraft out of any other airline in the world. The increase in demand for wide-body jets emphasizes the importance of the market in the Middle East and its supplies for the aircraft models. 

According to analysis from AllianceBernstein, a wealth management firm, “Middle East customers now account “for the largest portion of combined Airbus and Boeing wide-body passenger backlog at 30% of the global total.”

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The Middle East also has the major role of being a connection hub for long haul journeys. Boeing and Airbus are two companies that have been the biggest source of demand for wide-body jets “with buoyant long-term growth outlooks and healthy recovery in air travel demand since the Covid-19 pandemic fueling airlines’ optimism and orders,” according to CNBC

“Emirates is the biggest operator of Boeing 777 aircraft, and today’s order cements that position. We’ve been closely involved in the 777 program since its start up until this latest generation of 777X aircraft,” Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive of Emirates Airline and Group, said during a news conference.

“The 777 has been central to Emirates’ fleet and network strategy of connecting cities on all continents non-stop to Dubai. We are pleased to extend our relationship with Boeing and look forward to the first 777-9 joining our fleet in 2025,” he said.

magnolia

Magnolia Bakery To Begin Selling Cannabis Edibles 

Famous New York City-based Magnolia Bakery is venturing into a new version of some of their most iconic desserts: cannabis edibles. 

Magnolia Bakery will be transforming some of their most popular desserts, such as their banana pudding and red velvet cake, into THC-infused edibles in the form of limited-edition bars. This marks the bakery’s first venture into the cannabis market. 

According to the bakery, they’re planning to “celebrate the brand’s most iconic, fan-favorite flavors in a new light.”

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Both bars will contain tetrahydrocannabinol, or THC, the part of cannabis’ chemical makeup that produces the “high” when ingested. 

One of the iconic bakery desserts being made into a bar is the “Swirled Famous Banana Pudding,” which contains a dollop of Magnolia’s creamy vanilla pudding, crunchy vanilla cookies, and freeze-dried bananas. The bar is 10 small pieces containing 10mg of THC per piece. 

The other bar is a take on their “Red Velvet Piece Ahh Cake,” which will have flavors of their “moist, crimson-colored cake, a cream cheese flavor and rich chocolate.” This bar is also 10 pieces, and contains 10mg of THC as well as 10mg of CBD per piece. 

The prices of the bar will range from $18 to $30 depending on the flavor and state in which the bar is sold. As of this week, the bars are only being sold in three states; Illinois, Nevada, and Massachusetts. The bars will be sold through Rise Dispensaries, as Magnolia worked with Green Thumb Industries to make the bars. 

Green Thumb Industries is known for their production of Incredibles Edibles. While marijuana is still illegal on a federal level, around two dozen US states have legalized it for adult medical and recreational use. 

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With these legalizations, the edible market in general has grown exponentially, with products such as gummies, mints, brownies, cookies, and candy bars being sold under hundreds of brands. 

According to Headset, a cannabis research firm, edibles account for 12% of the total weed sales in the US, trailing behind actual flower, vapor pens, and pre-rolls. 

Every three of every four edibles sold are gummies. 

“Gummies are easier to travel with and carry around in your pocket versus a bunch of chocolates, fruity or sour flavors probably mask the weedy taste of edibles better,” Headset cofounder Scott Vickers told CNN.

Edibles generated about $2 billion in sales last year, which is a 6% increase from the year before. For Magnolia specifically, the edibles could bring a new wave of popularity to the bakery. 

“There is no real downside to Magnolia, as consumer opinions on cannabis are now relatively liberal. Moreover, these products will be sold through dispensaries rather than being available in mainstream retailers, so people not interested in marijuana will not be exposed to them,” he said to CNN.

airbnb

Airbnb CEO Asks Hosts to Lower Their Listing Prices

Airbnb CEO Brian Chesky is asking hosts on the short-term rental platform to lower their prices. In an interview with Bloomberg on Monday, Chesky said that he wanted the app to be able to compete with hotels.

“We want prices to move and to be more competitive vis-à-vis a hotels—that is really important. When our hosts provide better deals, they tend to make more money.”

Part of his solution includes giving hosts proper rate comparison tools for nearby hotels, which the app currently lacks.

“We’re [currently] giving tools to hosts to compare the prices of their listings to others in their neighborhood—and while we don’t yet have a hotel comparison, we do encourage them to look at rates for hotels in their area just so they have a sense of what travelers are getting on other platforms.”

According to Chesky, the company will also work to fix problems with pricing, transparency (by not showing customers the total price for each listing), and fake listings. Chesky’s remarks come as Airbnb has had a tumultuous year.

On the pricing front, the promise is to provide hosts with insights that ensure competitive nightly rates while also showing customers the total price per listing. These prices will include clear and lower cleaning fees, a frequent point of contention.

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Additionally, the app’s search feature was enhanced with new filters for king-size beds and pet-friendly homes. There is also a new listing verification system to decrease calls to customer service by identifying and removing fake listings.

“We need to get our house in order,” Chesky says.

“We need to make sure the listings are great, we’re providing great customer service, and we’re affordable. And I’ve told our team that we can get back to creating new and exciting things once we’ve fixed that foundation.”

The year 2022 marked the first year of profitability for the business. However, in March 2023, many hosts took to Twitter to express their frustration with declining bookings, increased competition, and shrinking profit margins. The perceived short-term rental bubble was dubbed “Airbnbust.”

Jamie Lane, an economist at vacation analytics firm AirDNA, told Insider in 2022 that there was an increase in supply, causing demand to spread out over more listings, leading to “occupancy decline.”

In September 2023, New York City also cracked down on short-term rentals, implementing a set of regulations that made it much harder for users to book an Airbnb rental.

The new rules mandate hosts register with the city to guarantee that their listings adhere to the city’s occupancy and building code regulations. According to Bloomberg, the company is expected to lose thousands of listings in one of its biggest markets.

Officials claim that illegal short-term rental listings, often with inhabitable conditions, contribute to New York City’s affordable housing crisis by taking homes off the market.

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Chesky claims that part of the app’s current struggles are due to the platform originally being “designed for a much smaller company,” before rapidly growing in popularity.

“To use a precise metaphor, it’s kind of like we never fully built the foundation. Like, we had a house, and it had four pillars when we needed to have 10.”

The company is using AI for quality control of its listings. According to Chesky, hosts are being asked to upload photos of the property’s interior and exterior as part of the listing process, with the intention of using computer vision technology to analyze the images and compare them to other databases, such as Google Earth, in order to generate a trustworthiness rating.

Any listing with a low score is sent to a human reviewer.

Chesky told the Financial Times that the company will also venture beyond short-term rentals, including offering long-term rentals.

“Travel is our sweet spot. Eventually, the big frontier for Airbnb is to go beyond travel. There’s an eventual opportunity for Airbnb to become a greater part of your daily life. Not just once or twice a year.”

 

ai

Amazon Invests up to $4 Billion in OpenAI Rival Anthropic in Exchange for Minority Stake

On Monday, Amazon announced it will invest up to $4 billion into the artificial intelligence company Anthropic. In exchange, Amazon will gain partial ownership, and Anthropic will use the company’s cloud computing platform, Amazon Web Services (AWS), more widely.

The growing relationship between the two firms is an example of how some large tech companies with extensive cloud computing resources are using those assets to strengthen their position in the artificial intelligence industry.

According to a statement released by Amazon, Anthropic will use AWS as its primary cloud provider, using the cloud platform to do most of its AI model development and research into AI safety. Anthropic will also have access to Amazon’s suite of in-house AI chips.

“AWS will become Anthropic’s primary cloud provider for mission-critical workloads, including safety research and future foundation model development. Anthropic plans to run the majority of its workloads on AWS, further providing Anthropic with the advanced technology of the world’s leading cloud provider.”

In addition, Anthropic has committed to making its AI models available to AWS users long-term, providing them with early access to features, including the ability to customize Anthropic models for their own purposes.

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“With today’s announcement, customers will have early access to features for customizing Anthropic models, using their own proprietary data to create their own private models, and will be able to utilize fine-tuning capabilities via a self-service feature.”

Amazon Web Services (AWS) customers already have access to Anthropic’s AI models through Amazon Bedrock, the tech giant’s storefront for AI goods. Bedrock not only supports Amazon’s own models but also those from third-party developers such as  Stability AI and AI21 Labs.

In a press release, the co-founder and CEO of Anthropic, Dario Amodei, said that his company is “excited to use AWS’s Trainium chips to develop future foundation models.”

“Since announcing our support of Amazon Bedrock in April, Claude has seen significant organic adoption from AWS customers. By significantly expanding our partnership, we can unlock new possibilities for organizations of all sizes as they deploy Anthropic’s safe, state-of-the-art AI systems together with AWS’s leading cloud technology.”

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Anthropic stated that Amazon’s minority stake would not alter the company’s corporate governance structure or its dedication to the ethical advancement of artificial intelligence.

“Our corporate governance structure remains unchanged, with the Long Term Benefit Trust continuing to guide Anthropic in accordance with our Responsible Scaling Policy. As outlined in this policy, we will conduct pre-deployment tests of new models to help us manage the risks of increasingly capable AI systems.”

Several cloud market leaders, like Microsoft and now Amazon, have made investments into artificial intelligence technology. OpenAI, the company that developed ChatGPT, received $1 billion from Microsoft in 2019. Microsoft recently also invested $10 billion in OpenAI and is striving to integrate OpenAI’s technology into consumer-facing Microsoft products such as Bing.

This deal is Amazon’s most recent push into the artificial intelligence space to compete with industry leaders like Microsoft and Alphabet’s Google.