Amazon

with-a-new-company,-jeff-bezos-will-become-a-ceo-again

With a new company, Jeff Bezos will become a CEO again

Jeff Bezos is one of the world’s richest and most famous tech CEOs, but he hasn’t actually been a CEO of anything since 2021. That’s now changing as he takes on the role of co-CEO of a new AI company, according to a New York Times report citing three people familiar with the company.

Grandiosely named Project Prometheus (and not to be confused with the NASA project of the same name), the company will focus on using AI to pursue breakthroughs in research, engineering, manufacturing, and other fields that are dubbed part of “the physical economy”—in contrast to the software applications that are likely the first thing most people in the general public think of when they hear “AI.”

Bezos’ co-CEO will be Vik Bajaj, a chemist and physicist who previously led life sciences work at Google X, an Alphabet-backed research group that worked on speculative projects that could lead to more product categories. (For example, it developed technologies that would later underpin Google’s Waymo service.) Bajaj also worked at Verily, another Alphabet-backed research group focused on life sciences, and Foresite Labs, an incubator for new AI companies.

With a new company, Jeff Bezos will become a CEO again Read More »

openai-signs-massive-ai-compute-deal-with-amazon

OpenAI signs massive AI compute deal with Amazon

On Monday, OpenAI announced it has signed a seven-year, $38 billion deal to buy cloud services from Amazon Web Services to power products like ChatGPT and Sora. It’s the company’s first big computing deal after a fundamental restructuring last week that gave OpenAI more operational and financial freedom from Microsoft.

The agreement gives OpenAI access to hundreds of thousands of Nvidia graphics processors to train and run its AI models. “Scaling frontier AI requires massive, reliable compute,” OpenAI CEO Sam Altman said in a statement. “Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”

OpenAI will reportedly use Amazon Web Services immediately, with all planned capacity set to come online by the end of 2026 and room to expand further in 2027 and beyond. Amazon plans to roll out hundreds of thousands of chips, including Nvidia’s GB200 and GB300 AI accelerators, in data clusters built to power ChatGPT’s responses, generate AI videos, and train OpenAI’s next wave of models.

Wall Street apparently liked the deal, because Amazon shares hit an all-time high on Monday morning. Meanwhile, shares for long-time OpenAI investor and partner Microsoft briefly dipped following the announcement.

Massive AI compute requirements

It’s no secret that running generative AI models for hundreds of millions of people currently requires a lot of computing power. Amid chip shortages over the past few years, finding sources of that computing muscle has been tricky. OpenAI is reportedly working on its own GPU hardware to help alleviate the strain.

But for now, the company needs to find new sources of Nvidia chips, which accelerate AI computations. Altman has previously said that the company plans to spend $1.4 trillion to develop 30 gigawatts of computing resources, an amount that is enough to roughly power 25 million US homes, according to Reuters.

OpenAI signs massive AI compute deal with Amazon Read More »

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A single point of failure triggered the Amazon outage affecting millions

In turn, the delay in network state propagations spilled over to a network load balancer that AWS services rely on for stability. As a result, AWS customers experienced connection errors from the US-East-1 region. AWS network functions affected included the creating and modifying Redshift clusters, Lambda invocations, and Fargate task launches such as Managed Workflows for Apache Airflow, Outposts lifecycle operations, and the AWS Support Center.

For the time being, Amazon has disabled the DynamoDB DNS Planner and the DNS Enactor automation worldwide while it works to fix the race condition and add protections to prevent the application of incorrect DNS plans. Engineers are also making changes to EC2 and its network load balancer.

A cautionary tale

Ookla outlined a contributing factor not mentioned by Amazon: a concentration of customers who route their connectivity through the US-East-1 endpoint and an inability to route around the region. Ookla explained:

The affected US‑EAST‑1 is AWS’s oldest and most heavily used hub. Regional concentration means even global apps often anchor identity, state or metadata flows there. When a regional dependency fails as was the case in this event, impacts propagate worldwide because many “global” stacks route through Virginia at some point.

Modern apps chain together managed services like storage, queues, and serverless functions. If DNS cannot reliably resolve a critical endpoint (for example, the DynamoDB API involved here), errors cascade through upstream APIs and cause visible failures in apps users do not associate with AWS. That is precisely what Downdetector recorded across Snapchat, Roblox, Signal, Ring, HMRC, and others.

The event serves as a cautionary tale for all cloud services: More important than preventing race conditions and similar bugs is eliminating single points of failure in network design.

“The way forward,” Ookla said, “is not zero failure but contained failure, achieved through multi-region designs, dependency diversity, and disciplined incident readiness, with regulatory oversight that moves toward treating the cloud as systemic components of national and economic resilience.”

A single point of failure triggered the Amazon outage affecting millions Read More »

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Smart beds leave sleepers hot and bothered during AWS outage

Some users complained that malfunctioning devices kept them awake for hours. Others bemoaned waking up in the middle of the night drenched in sweat.

Even more basic features, such as alarms, failed to work when Eight Sleep’s servers went down.

Eight Sleep will offer local control

Eight Sleep co-founder and CEO Matteo Franceschetti addressed the problems via X on Monday:

The AWS outage has impacted some of our users since last night, disrupting their sleep. That is not the experience we want to provide and I want to apologize for it.

We are taking two main actions:

1) We are restoring all the features as AWS comes back. All devices are currently working, with some experiencing data processing delays.

2) We are currently outage-proofing your Pod experience and we will be working tonight-24/7 until that is done.

On Monday evening, Franceschetti said that “all the features should be working.” On Tuesday, he claimed that a local control option would be available on Wednesday “at the latest” without providing more detail.

Eight Sleep users will be relieved to hear that the company is working to make their products usable during Internet outages. But many are also questioning why Eight Sleep didn’t implement local control sooner. This isn’t Eight Sleep’s first outage, and users can also experience personal Wi-Fi problems. And there’s an obvious user benefit to being able to control their bed’s elevation and temperature without the Internet or if Eight Sleep ever goes out of business.

For Eight Sleep, though, making flagship features available without its app while still making enough money isn’t easy. Without forcing people to put their Eight Sleep devices online, it would be harder for Eight Sleep to convince people that Autopilot subscriptions should be mandatory. Pod hardware’s high prices will deter people from multiple or frequent purchases, making alternative, more frequent revenue streams key for the 11-year-old company’s survival.

After a June outage, an Eight Sleep user claimed that the company told him that it was working on an offline mode. This week’s AWS problems seem to have hastened efforts, so users don’t lose sleep during the next outage.

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amazon’s-dns-problem-knocked-out-half-the-web,-likely-costing-billions

Amazon’s DNS problem knocked out half the web, likely costing billions

On Monday afternoon, Amazon confirmed that an outage affecting Amazon Web Services’ cloud hosting, which had impacted millions across the Internet, had been resolved.

Considered the worst outage since last year’s CrowdStrike chaos, Amazon’s outage caused “global turmoil,” Reuters reported. AWS is the world’s largest cloud provider and, therefore, the “backbone of much of the Internet,” ZDNet noted. Ultimately, more than 28 AWS services were disrupted, causing perhaps billions in damages, one analyst estimated for CNN.

Popular apps like Snapchat, Signal, and Reddit went dark. Flights got delayed. Banks and financial services went down. Massive games like Fortnite could not be accessed. Some of Amazon’s own services were hit, too, including its e-commerce platform, Alexa, and Prime Video. Ultimately, millions of businesses simply stopped operating, unable to log employees into their systems or accept payments for their goods.

“The incident highlights the complexity and fragility of the Internet, as well as how much every aspect of our work depends on the Internet to work,” Mehdi Daoudi, the CEO of an Internet performance monitoring firm called Catchpoint, told CNN. “The financial impact of this outage will easily reach into the hundreds of billions due to loss in productivity for millions of workers that cannot do their job, plus business operations that are stopped or delayed—from airlines to factories.”

Amazon’s problems originated at a US site that is its “oldest and largest for web services” and often “the default region for many AWS services,” Reuters noted. The same site has experienced two outages before in 2020 and 2021, but while the tech giant had confirmed that those prior issues had been “fully mitigated,” apparently the fixes did not ensure stability into 2025.

Amazon’s DNS problem knocked out half the web, likely costing billions Read More »

ring-cameras-are-about-to-get-increasingly-chummy-with-law-enforcement

Ring cameras are about to get increasingly chummy with law enforcement


Amazon’s Ring partners with company whose tech has reportedly been used by ICE.

Ring’s Outdoor Cam Pro. Credit: Amazon

Law enforcement agencies will soon have easier access to footage captured by Amazon’s Ring smart cameras. In a partnership announced this week, Amazon will allow approximately 5,000 local law enforcement agencies to request access to Ring camera footage via surveillance platforms from Flock Safety. Ring cooperating with law enforcement and the reported use of Flock technologies by federal agencies, including US Immigration and Customs Enforcement (ICE), has resurfaced privacy concerns that have followed the devices for years.

According to Flock’s announcement, its Ring partnership allows local law enforcement members to use Flock software “to send a direct post in the Ring Neighbors app with details about the investigation and request voluntary assistance.” Requests must include “specific location and timeframe of the incident, a unique investigation code, and details about what is being investigated,” and users can look at the requests anonymously, Flock said.

“Any footage a Ring customer chooses to submit will be securely packaged by Flock and shared directly with the requesting local public safety agency through the FlockOS or Flock Nova platform,” the announcement reads.

Flock said its local law enforcement users will gain access to Ring Community Requests in “the coming months.”

A flock of privacy concerns

Outside its software platforms, Flock is known for license plate recognition cameras. Flock customers can also search footage from Flock cameras using descriptors to find people, such as “man in blue shirt and cowboy hat.” Besides law enforcement agencies, Flock says 6,000 communities and 1,000 businesses use their products.

For years, privacy advocates have warned against companies like Flock.

This week, US Sen. Ron Wyden (D-Ore.) sent a letter [PDF] to Flock CEO Garrett Langley saying that ICE’s Homeland Security Investigations (HSI), the Secret Service, and the US Navy’s Criminal Investigative Service have had access to footage from Flock’s license plate cameras.

“I now believe that abuses of your product are not only likely but inevitable and that Flock is unable and uninterested in preventing them,” Wyden wrote.

In August, Jay Stanley, senior policy analyst for the ACLU Speech, Privacy, and Technology Project, wrote that “Flock is building a dangerous, nationwide mass-surveillance infrastructure.” Stanley pointed to ICE using Flock’s network of cameras, as well as Flock’s efforts to build a people lookup tool with data brokers.

Matthew Guariglia, senior policy analyst at the Electronic Frontier Foundation (EFF), told Ars via email that Flock is a “mass surveillance tool” that “has increasingly been used to spy on both immigrants and people exercising their First Amendment-protected rights.”

Flock has earned this reputation among privacy advocates through its own cameras, not Ring’s.

An Amazon spokesperson told Ars Technica that only local public safety agencies will be able to make Community Requests via Flock software, and that requests will also show the name of the agency making the request.

A Flock spokesperson told Ars:

Flock does not currently have any contracts with any division of [the US Department of Homeland Security], including ICE. The Ring Community Requests process through Flock is only available for local public safety agencies for specific, active investigations. All requests are time and geographically-bound. Ring users can choose to share relevant footage or ignore the request.

Flock’s rep added that all activity within FlockOS and Flock Nova is “permanently recorded in a comprehensive CJIS-compliant audit trail for unalterable custody tracking,” referring to a set of standards created by the FBI’s Criminal Justice Information Services division.

But there’s still concern that federal agencies will end up accessing Ring footage through Flock. Guariglia told Ars:

Even without formal partnerships with federal authorities, data from these surveillance companies flow to agencies like ICE through local law enforcement. Local and state police have run more than 4,000 Flock searches on behalf of federal authorities or with a potential immigration focus, reporting has found. Additionally, just this month, it became clear that Texas police searched 83,000 Flock cameras in an attempt to prosecute a woman for her abortion and then tried to cover it up.

Ring cozies up to the law

This week’s announcement shows Amazon, which acquired Ring in 2018, increasingly positioning its consumer cameras as a law enforcement tool. After years of cops using Ring footage, Amazon last year said that it would stop letting police request Ring footage—unless it was an “emergency”—only to reverse course about 18 months later by allowing police to request Ring footage through a Flock rival, Axon.

While announcing Ring’s deals with Flock and Axon, Ring founder and CEO Jamie Siminoff claimed that the partnerships would help Ring cameras keep neighborhoods safe. But there’s doubt as to whether people buy Ring cameras to protect their neighborhood.

“Ring’s new partnership with Flock shows that the company is more interested in contributing to mounting authoritarianism than servicing the specific needs of their customers,” Guariglia told Ars.

Interestingly, Ring initiated conversations about a deal with Flock, Langely told CNBC.

Flock says that its cameras don’t use facial recognition, which has been criticized for racial biases. But local law enforcement agencies using Flock will soon have access to footage from Ring cameras with facial recognition. In a conversation with The Washington Post this month, Calli Schroeder, senior counsel at the consumer advocacy and policy group Electronic Privacy Information Center, described the new feature for Ring cameras as “invasive for anyone who walks within range of” a Ring doorbell, since they likely haven’t consented to facial recognition being used on them.

Amazon, for its part, has mostly pushed the burden of ensuring responsible facial recognition use to its customers. Schroeder shared concern with the Post that Ring’s facial recognition data could end up being shared with law enforcement.

Some people who are perturbed about Ring deepening its ties with law enforcement have complained online.

“Inviting big brother into the system. Screw that,” a user on the Ring subreddit said this week.

Another Reddit user said: “And… I’m gone. Nope, NO WAY IN HELL. Goodbye, Ring. I’ll be switching to a UniFi[-brand] system with 100 percent local storage. You don’t get my money any more. This is some 1984 BS …”

Privacy concerns are also exacerbated by Ring’s past, as the company has previously failed to meet users’ privacy expectations. In 2023, Ring agreed to pay $5.8 million to settle claims that employees illegally spied on Ring customers.

Amazon and Flock say their collaboration will only involve voluntary customers and local enforcement agencies. But there’s still reason to be concerned about the implications of people sending doorbell and personal camera footage to law enforcement via platforms that are reportedly widely used by federal agencies for deportation purposes. Combined with the privacy issues that Ring has already faced for years, it’s not hard to see why some feel that Amazon scaling up Ring’s association with any type of law enforcement is unacceptable.

And it appears that Amazon and Flock would both like Ring customers to opt in when possible.

“It will be turned on for free for every customer, and I think all of them will use it,” Langely told CNBC.

Photo of Scharon Harding

Scharon is a Senior Technology Reporter at Ars Technica writing news, reviews, and analysis on consumer gadgets and services. She’s been reporting on technology for over 10 years, with bylines at Tom’s Hardware, Channelnomics, and CRN UK.

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People regret buying Amazon smart displays after being bombarded with ads

Amazon Echo Show owners are reporting an uptick in advertisements on their smart displays.

The company’s Echo Show smart displays have previously shown ads through the company’s Shopping Lists feature, as well as advertising for Alexa skills. Additionally, Echo Shows may play audio ads when users listen to Amazon Music on Alexa.

However, reports on Reddit (examples here, here, and here) and from The Verge’s Jennifer Pattison Tuohy, who owns more than one Echo Show, suggest that Amazon has increased the amount of ads it shows on its smart displays’ home screens. The Echo Show’s apparent increase in ads is pushing people to stop using or even return their Echo Shows.

The smart displays have also started showing ads for Alexa+, the new generative AI version of Amazon’s Alexa voice assistant. Ads for the subscription-based Alexa+ are reportedly taking over Echo Show screens, even though the service is still in Early Access.

“This is getting ridiculous and I’m about to just toss the whole thing and move back to Google,” one Redditor said of the “full-volume” ads for Alexa+ on their Echo Show.

The Verge’s Tuohy reported seeing ads on one (but not all) of her Echo Shows for the first time this week and said ads sometimes show when the display is set to show personal photos. She reported seeing ads for “elderberry herbal supplements, Quest sports chips, and tabletop picture frames.”

Users are unable to disable the home screen ads. When reached for comment, an Amazon spokesperson told Ars Technica:

People regret buying Amazon smart displays after being bombarded with ads Read More »

bank-of-england-warns-ai-stock-bubble-rivals-2000-dotcom-peak

Bank of England warns AI stock bubble rivals 2000 dotcom peak

Share valuations based on past earnings have also reached their highest levels since the dotcom bubble 25 years ago, though the BoE noted they appear less extreme when based on investors’ expectations for future profits. “This, when combined with increasing concentration within market indices, leaves equity markets particularly exposed should expectations around the impact of AI become less optimistic,” the central bank said.

Toil and trouble?

The dotcom bubble offers a potentially instructive parallel to our current era. In the late 1990s, investors poured money into Internet companies based on the promise of a transformed economy, seemingly ignoring whether individual businesses had viable paths to profitability. Between 1995 and March 2000, the Nasdaq index rose 600 percent. When sentiment shifted, the correction was severe: the Nasdaq fell 78 percent from its peak, reaching a low point in October 2002.

Whether we’ll see the same thing or worse if an AI bubble pops is mere speculation at this point. But similar to the early 2000s, the question about today’s market isn’t necessarily about the utility of AI tools themselves (the Internet was useful, afterall, despite the bubble), but whether the amount of money being poured into the companies that sell them is out of proportion with the potential profits those improvements might bring.

We don’t have a crystal ball to determine when such a bubble might pop, or even if it is guaranteed to do so, but we’ll likely continue to see more warning signs ahead if AI-related deals continue to grow larger and larger over time.

Bank of England warns AI stock bubble rivals 2000 dotcom peak Read More »

amazon-agrees-to-make-canceling-prime-easy,-will-refund-customers-$1.5b

Amazon agrees to make canceling Prime easy, will refund customers $1.5B

Amazon must also post prominent disclosures describing how auto-renewals and cancellations work, as well as offer “an easy way for consumers to cancel Prime, using the same method that consumers used to sign up.”

“The process cannot be difficult, costly, or time-consuming,” the FTC said.

Moving forward, Amazon must also pay for “an independent, third-party supervisor to monitor Amazon’s compliance” with the distribution of customer refunds.

Celebrating the victory after a 3–0 vote approving the settlement, FTC chairman Andrew Ferguson described Amazon’s $2.5 billion payout as a “record-breaking, monumental win for the millions of Americans who are tired of deceptive subscriptions that feel impossible to cancel.”

The press release cited internal documents in which Amazon executives and employees “knowingly discussed” how hard it was to cancel Prime, exchanging messages admitting that “subscription driving is a bit of a shady world” and suggesting that forcing unwanted subscriptions was “an unspoken cancer.”

“The evidence showed that Amazon used sophisticated subscription traps designed to manipulate consumers into enrolling in Prime and then made it exceedingly hard for consumers to end their subscription,” Ferguson said. “Today, we are putting billions of dollars back into Americans’ pockets and making sure Amazon never does this again.”

Amazon did not immediately respond to Ars’ request to comment.

Amazon agrees to make canceling Prime easy, will refund customers $1.5B Read More »

microsoft-ends-openai-exclusivity-in-office,-adds-rival-anthropic

Microsoft ends OpenAI exclusivity in Office, adds rival Anthropic

Microsoft’s Office 365 suite will soon incorporate AI models from Anthropic alongside existing OpenAI technology, The Information reported, ending years of exclusive reliance on OpenAI for generative AI features across Word, Excel, PowerPoint, and Outlook.

The shift reportedly follows internal testing that revealed Anthropic’s Claude Sonnet 4 model excels at specific Office tasks where OpenAI’s models fall short, particularly in visual design and spreadsheet automation, according to sources familiar with the project cited by The Information, who stressed the move is not a negotiating tactic.

Anthropic did not immediately respond to Ars Technica’s request for comment.

In an unusual arrangement showing the tangled alliances of the AI industry, Microsoft will reportedly purchase access to Anthropic’s models through Amazon Web Services—both a cloud computing rival and one of Anthropic’s major investors. The integration is expected to be announced within weeks, with subscription pricing for Office’s AI tools remaining unchanged, the report says.

Microsoft maintains that its OpenAI relationship remains intact. “As we’ve said, OpenAI will continue to be our partner on frontier models and we remain committed to our long-term partnership,” a Microsoft spokesperson told Reuters following the report. The tech giant has poured over $13 billion into OpenAI to date and is currently negotiating terms for continued access to OpenAI’s models amid ongoing negotiations about their partnership terms.

Stretching back to 2019, Microsoft’s tight partnership with OpenAI until recently gave the tech giant a head start in AI assistants based on language models, allowing for a rapid (though bumpy) deployment of OpenAI-technology-based features in Bing search and the rollout of Copilot assistants throughout its software ecosystem. It’s worth noting, however, that a recent report from the UK government found no clear productivity boost from using Copilot AI in daily work tasks among study participants.

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is-the-ai-bubble-about-to-pop?-sam-altman-is-prepared-either-way.

Is the AI bubble about to pop? Sam Altman is prepared either way.

Still, the coincidence between Altman’s statement and the MIT report reportedly spooked tech stock investors earlier in the week, who have already been watching AI valuations climb to extraordinary heights. Palantir trades at 280 times forward earnings. During the dot-com peak, ratios of 30 to 40 times earnings marked bubble territory.

The apparent contradiction in Altman’s overall message is notable. This isn’t how you’d expect a tech executive to talk when they believe their industry faces imminent collapse. While warning about a bubble, he’s simultaneously seeking a valuation that would make OpenAI worth more than Walmart or ExxonMobil—companies with actual profits. OpenAI hit $1 billion in monthly revenue in July but is reportedly heading toward a $5 billion annual loss. So what’s going on here?

Looking at Altman’s statements over time reveals a potential multi-level strategy. He likes to talk big. In February 2024, he reportedly sought an audacious $5 trillion–7 trillion for AI chip fabrication—larger than the entire semiconductor industry—effectively normalizing astronomical numbers in AI discussions.

By August 2025, while warning of a bubble where someone will lose a “phenomenal amount of money,” he casually mentioned that OpenAI would “spend trillions on datacenter construction” and serve “billions daily.” This creates urgency while potentially insulating OpenAI from criticism—acknowledging the bubble exists while positioning his company’s infrastructure spending as different and necessary. When economists raised concerns, Altman dismissed them by saying, “Let us do our thing,” framing trillion-dollar investments as inevitable for human progress while making OpenAI’s $500 billion valuation seem almost small by comparison.

This dual messaging—catastrophic warnings paired with trillion-dollar ambitions—might seem contradictory, but it makes more sense when you consider the unique structure of today’s AI market, which is absolutely flush with cash.

A different kind of bubble

The current AI investment cycle differs from previous technology bubbles. Unlike dot-com era startups that burned through venture capital with no path to profitability, the largest AI investors—Microsoft, Google, Meta, and Amazon—generate hundreds of billions of dollars in annual profits from their core businesses.

Is the AI bubble about to pop? Sam Altman is prepared either way. Read More »

report:-apple’s-smart-home-ambitions-include-“tabletop-robot,”-cameras,-and-more

Report: Apple’s smart home ambitions include “tabletop robot,” cameras, and more

Rumors about a touchscreen-equipped smart home device from Apple have been circulating for years, periodically bolstered by leaked references in Apple’s software updates. But a report from Bloomberg’s Mark Gurman indicates that Apple’s ambitions might extend beyond HomePods with screens attached.

Gurman claims that Apple is working on a “tabletop robot” that “resembles an iPad mounted on a movable limb that can swivel and reposition itself to follow users in a room.” The device will also turn toward people who are addressing it or toward people whose attention it’s trying to get. Prototypes have used a 7-inch display similar in size to an iPad mini, with a built-in camera for FaceTime calls.

Apple is reportedly targeting a 2027 launch for some version of this robot, although, as with any unannounced Apple product, it could come out earlier, later, or not at all. Gurman reported in January that a different smart home device—essentially a HomePod with a screen, without the moving robot parts—was being planned for 2025, but has said more recently that Apple has bumped it to 2026. The robot could be a follow-up to or a fancier, more expensive version of that device, and it sounds like both will run the same software.

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