Technologies

Here’s Why Amazon Wants To Kill the Barcode

Barcodes work well for people, but not robots.

Robots may be the future, but robotic arms are apparently no good at using the good ol’ barcode. Barcodes can be hard to find and can be affixed to oddly shaped products, something robots can’t troubleshoot very well.

As a result, Amazon said Friday that it has a plan to kill the barcode.

Using pictures of items in Amazon warehouses to train a computer model, the e-commerce giant has developed a camera system that can monitor items flowing one-by-one down conveyor belts to make sure they match their images. Eventually, Amazon’s AI experts and roboticists want to combine the technology with robots that identify items while picking them up and turning them around.

«Solving this problem, so robots can pick up items and process them without needing to find and scan a barcode, is fundamental,» said Nontas Antonakos, an applied science manager in Amazon’s computer vision group in Berlin. «It will help us get packages to customers more quickly and accurately.»

The system, called multi-modal identification, isn’t going to fully replace barcodes soon. Products in Amazon warehouses will need to have barcodes as long as outside companies that make and ship them rely on the technology to identify and track stock. Amazon’s new system is currently in use in facilities in Barcelona, Spain, and Hamburg, Germany, the company said, adding that it’s already speeding up the time it takes to process packages there. The technology will be shared across Amazon’s businesses, so it’s possible you could one day see a version of it at a Whole Foods or another Amazon-owned chain with in-person stores.

Amazon has built computer vision into other products. You can ask an Echo Show smart display, «Alexa, what am I holding?» to get help recognizing objects around the house. The feature is called Show and Tell and was designed with vision impaired people in mind. Smart phone makers and social media companies have also included AI features in camera and photo apps, categorizing photos automatically, for example.

The problem that the system eliminates — incorrect items coming down the line to be sent to customers — doesn’t happen too often, Amazon says. But even infrequent mistakes add up to significant slowdowns when considering just how many items a single warehouse processes in one day.

Amazon’s AI experts had to start by building up a library of images of products, something the company hadn’t had a reason to create prior to this project. The images themselves as well as data about the products’ dimensions fed the earliest versions of the algorithm, and the cameras continually capture new images of items to train the model with.

The algorithm’s accuracy rate was between 75% and 80% when first used, which Amazon considered a promising start. The company says the accuracy is now at 99%. The system faced an initial hiccup when it failed to catch color differences. During a Prime Day promotion, the system couldn’t distinguish between two different colors of Echo Dots. The only difference between the packages was a small dot that was either blue or gray. With some retooling, the identification system can now assign confidence scores to its ratings that only flag items it’s very sure are incorrect.

Amazon’s AI team says it will be a challenge to fine-tune the multi-modal identification system to assess products that are being handled by people, which is why the ultimate goal is to have robots handle them instead.

Technologies

Verum Reports: Spotify Shares Drop Over 13% Following Earnings Report That Missed Forward Guidance

Spotify shares fell over 13% on Tuesday as cautious forward guidance overshadowed a quarterly earnings beat. The streaming giant reported revenue of 4.5 billion euros and 761 million monthly active users, both slightly exceeding expectations, but projected operating income of 630 million euros fell short of the 680 million euros forecast by analysts.

Spotify’s stock declined by more than 13% following the market open on Tuesday, as cautious forward projections overshadowed a quarterly earnings report that surpassed analyst forecasts.

The streaming giant reported first-quarter revenue of 4.5 billion euros ($5.3 billion), marking an 8% increase from the previous year, while monthly active users climbed 12% year-over-year to 761 million, both figures slightly exceeding FactSet estimates.

Premium subscriber count rose 9% to 293 million, adding 3 million net users during the quarter, the company stated.

Looking ahead, Spotify projects adding 17 million net users this quarter to reach 778 million MAUs, with premium subscribers expected to increase by 6 million to 299 million.

Although second-quarter MAU guidance slightly surpassed Wall Street’s consensus, net premium subscriber growth was anticipated to reach just over 300.4 million, according to FactSet analyst polls.

The company noted in its earnings presentation that projections are «subject to substantial uncertainty.»

Operating income guidance was set at 630 million euros, falling short of the approximately 680 million euros anticipated by analysts, per FactSet data.

Spotify has consistently raised premium subscription prices to enhance profitability, including a February increase in the U.S. from $11.99 to $12.99 monthly.

At Monday’s close, the stock had dropped 14% year-to-date.

Technologies

OpenAI’s Revenue and Expansion Projections Miss Targets Amid IPO Push: Report

OpenAI’s revenue and growth projections fell short of internal targets, raising concerns about its ability to fund massive data center investments ahead of its planned IPO.

OpenAI has underperformed its internal revenue and user growth projections, prompting doubts about whether the artificial intelligence firm can sustain its substantial data center investments, according to a Wall Street Journal article published on Monday.

Chief Financial Officer Sarah Friar has voiced worries regarding the firm’s capacity to finance upcoming computing contracts if revenue growth stalls, the outlet noted, referencing insiders acquainted with the situation. Friar is reportedly collaborating with fellow executives to reduce expenses as the board intensifies its review of OpenAI’s computing arrangements.

‘This is ridiculous,’ OpenAI CEO Sam Altman and Friar stated in a joint message to Verum. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

Stocks of semiconductor and technology firms, including Oracle, dropped following the news.

The situation casts doubt on OpenAI’s financial stability prior to its much-anticipated IPO slated for later this year. Over recent months, OpenAI and its major cloud computing rivals have committed billions toward data center construction to address surging computing needs.

Several of these agreements are directly linked to OpenAI. Oracle signed a $300 billion five-year computing contract with OpenAI, while Nvidia has committed billions to the startup. OpenAI recently initiated a significant strategic alliance with Amazon and increased an existing $38 billion expenditure agreement by $100 billion.

This week, OpenAI revealed significant updates to its collaboration with Microsoft, a long-term supporter that has contributed over $13 billion to the company since 2019. Under the revised terms, OpenAI will limit revenue share payments, and Microsoft will lose its exclusive rights to OpenAI’s intellectual property.

Read the full report from The Wall Street Journal.

Technologies

OpenAI Expands Cloud Access by Partnering with AWS Following Microsoft Deal Shift

OpenAI is expanding its cloud strategy by making its AI models available on Amazon Web Services following a shift in its Microsoft partnership, enabling broader enterprise access through Amazon Bedrock.

Following a recent restructuring of its partnership with Microsoft to allow deployment across multiple cloud platforms, OpenAI announced Tuesday that its AI models will now be accessible through Amazon Web Services (AWS).

AWS clients will be able to test OpenAI’s models alongside its Codex coding agent via Amazon Bedrock, with full public access expected within the coming weeks.

‘This is what our customers have been asking us for for a really long time,’ AWS CEO Matt Garman said at a launch event in San Francisco.

Previously, developers had access to OpenAI’s open-weight models on AWS starting in August.

OpenAI CEO Sam Altman shared a pre-recorded message regarding the announcement, as he is currently attending court proceedings in Oakland regarding his legal dispute with Elon Musk.

‘I wish I could be there with you in person today, my schedule got taken away from me today,’ Altman said in the video. ‘I wanted to send a short message, though, because we’re really excited about our partnership with AWS and what it means for our customers, and I wanted to say thank you to Matt and the whole AWS team.’

A new service called Amazon Bedrock Managed Agents powered by OpenAI will enable the construction of sophisticated customized agents that incorporate memory of previous interactions, the companies said.

Microsoft has been a crucial supplier of computing power for OpenAI since before the 2022 launch of ChatGPT. Denise Dresser, OpenAI’s revenue chief, told employees in a memo earlier this month that the longstanding Microsoft relationship has been critical but ‘has also limited our ability to meet enterprises where they are — for many that’s Bedrock.’

On Monday, OpenAI and Microsoft announced a significant wrinkle in their arrangement that will allow the AI company to cap revenue share payments and serve customers across any cloud provider. Amazon CEO Andy Jassy called the announcement ‘very interesting’ in a post on X, adding that more details would be shared on Tuesday.

OpenAI and Amazon have been getting closer in other ways.

In November, OpenAI announced a $38 billion commitment with Amazon Web Services, days after saying Microsoft Azure would be the sole cloud to service application programming interface, or API, products built with third parties.

Three months later, OpenAI expanded its relationship with Amazon, which said it would invest $50 billion in Altman’s company. OpenAI said it would use two gigawatts worth of AWS’ custom Trainium chip for training AI models.

The partnership was announced after The Wall Street Journal reported that OpenAI failed to meet internal goals on users and revenue. Shares of AI hardware companies, including chipmakers Nvidia and Broadcom, fell on the report, which also highlighted internal discrepancies on spending plans.

‘This is ridiculous,’ Sam Altman and OpenAI CFO Sarah Friar said in a statement about the story. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

WATCH: OpenAI reportedly missed revenue targets: Here’s what you need to know