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Amazon Astro home robot
Todd Haselton | CNBC

Amazon announced its long-rumored $999 Astro home robot on Tuesday. I had a chance to check it out in a demo with Amazon last week and wanted to share a few thoughts on what Astro is, what it can and can’t do and why Amazon decided to build a home robot.

Astro seems like a strange gadget for Amazon to launch. The company is best known as an online store. And most of its operating profit comes from its AWS cloud business. Notably, Astro is a “Day 1 Edition” product, which means it won’t be sold to everyone at first. Instead, Amazon will ask people to sign up and then invite them to order the robot. That allows Amazon to avoid building too many gadgets it won’t sell and a public flop like the Amazon Fire Phone that was discontinued in 2015.

Amazon said Astro will go on sale later this year but did not give a specific launch date. (It’s worth noting that Amazon has made similar promises about future products that either never launched or were severely delayed.)

So, why robots?

Amazon Astro home robot
Todd Haselton | CNBC

“We get together every once in a while and we organize a senior team meeting around ‘what are some of the changes in technology?'” Amazon’s vice president of product Charlie Tritschler told me. “And we talked about AI and processors getting more powerful and inevitably robotics came up. And one of the discussions was: ‘Does anyone here in this meeting think that in 5-10 years there won’t be more robots in your home?’ And everyone was like ‘well yeah, of course.’ It’s like, well then let’s going.”

Tritschler said Astro brings together a lot of what Amazon already offers in other products.

“We’ve got a decade-plus with what we’ve done in fulfillment centers,” Tritschler said of the company’s industrial robots that cart products through its warehouses. “But then all of the things we’ve done in devices and Amazon Prime Video and Alexa and home monitoring, and we had so many things we could pull together.” 

That’s a good representation of what I saw in the demo. 

Amazon’s Astro robot

What is Astro?

Astro is about the size of a small dog. It roams around your house on three wheels, including two big ones that prevent it from getting stuck and a smaller one for rotating. It has a camera that rises up on a 42-inch arm that can keep an eye on your home as Astro patrols while you’re away. It can follow you around and play music or display TV shows on its 10-inch touchscreen. It can recognize faces (if you want it to) so you can load up two sodas in the back storage compartment and tell Astro to go to someone in the living room.

Astro is like a combo of lots of Amazon’s other gadgets placed on wheels. The cameras can be used for home security or for video chat, sort of combining Amazon’s Ring cameras with its Echo Show smart screens. The cameras are also used to create a map of your house when you set Astro up for the first time. You can talk to Astro much like you’d talk to an Echo or Alexa (you can change the name to Alexa if you want) to get sports scores or the weather. And you can play movies or TV shows like you would on an Amazon tablet or Fire TV.

Astro can carry things in this cubby. You can also add accessories, like a cupholder or an Omron blood pressure monitor.
Todd Haselton | CNBC

I also saw how you can control Astro remotely from a phone app, which is useful if you want to keep an eye on a loved one who lives alone, like an aging family member. Tritschler told me Amazon will also sell a third-party insert made by Omron that fits into the back storage compartment and can hold a blood pressure cuff. That will allow folks to control Astro remotely and remind people who live alone to check their blood pressure, which seems useful and opens Astro up to an audience outside of just gadget-geeks who want a home robot.

But Astro doesn’t have arms or hands so, it can’t pick things up. It’s not quite the level of Rosie from “The Jetsons” TV show. (Speaking of that show, Astro is not named after the Jetsons’ dog. Early testers just preferred that name over others.) It also can’t go up or down stairs, so it’s really only good for one floor of a house.

“Wouldn’t it be nice if manipulation could do more? Could you have an arm that picks things up off the floor or tidies up or brings you drinks? But when we looked at technologies and the cost and complexity of those technologies today, and reliability at the consumer level, they’re just not there yet,” Tritschler said. “And we realized, hey, this is a journey, we don’t have to do everything in the first product. So we focused here on mobility, intelligent motion, visual ID, and some of the other really tough challenges we had to overcome.”

The periscope camera that rises out of the Amazon Astro robot.
Todd Haselton | CNBC

I’m torn on how I feel about the Astro.

On one hand, wow, it’s cool that we finally have a home robot, even if it can’t clean up and bring me stuff from the fridge. On the other, I can’t really think of many reasons why I’d need one in my house at its current price, other than as a conversation starter or for home security since a roaming robot seems like it would be effective.

I think Astro will be most compelling for people who want to keep an eye on loved ones who live alone, and who might find it useful to call over a robot with their medicine inside, or a blood pressure monitor sitting in its cubby. 

Sensors on the front of the Astro robot help it avoid running into stuff.
Todd Haselton | CNBC

Tritschler said Amazon is bullish on robots, though, and made it clear this is just the first one. Amazon has a lot of ideas on how to make them even better. I knocked the Amazon Echo when it first launched in 2014. Now millions of people have one in their homes. Maybe the same will be true for Astro in 10 years. That’s Amazon’s goal.

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Tesla shares dip in premarket trade after reports the firm will lay off more than 10% of global workforce

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Tesla shares dip in premarket trade after reports the firm will lay off more than 10% of global workforce

A Tesla supercharger is shown at a charging station in Santa Clarita, California, U.S. October 2, 2019. 

Mike Blake | Reuters

Tesla shares were down over 1% in premarket trade Monday on media reports that the automaker will lay off more than 10% of its global workforce.

The company’s stock was down 1.2% in premarket deals at roughly 7:30 a.m. ET.

“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” Tesla CEO Elon Musk said in an internal memo cited by Reuters, which tech publication Electrek referenced in the first report of the layoffs.

“As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally,” the memo said.

CNBC was unable to independently verify the memo and has reached out for comment.

Tesla had 140,473 employees as of December 2023.

Tesla is going through a 'code red situation' right now, says Wedbush's Dan Ives

Tesla shares have taken a bruising in recent months, down 31% in the year-to-date amid waning demand for electric vehicles and stiffening competition from Chinese automakers. Foreshadowing layoffs, the company earlier this month reported its first annual decline in vehicle deliveries since 2020, when the Covid-19 pandemic disrupted production extraneous of demand — first-quarter deliveries fell by 8.5% on the year to 386,810 in the first quarter, with output down 1.7% from a year earlier and 12.5% sequentially.

Deliveries serve as an approximation of Tesla sales but are not precisely defined in the company’s shareholder communications.

Since then, the firm has also resorted to trimming the subscription price of its premium driver assistance system, the Full Self-Driving package, for U.S. customers — in a move sharply at odds with Musk’s previous pledges that the FSD fee would only bulk up as Tesla bolsters the system’s features and functionality.

This breaking news story is being updated.

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Freetrade, Britain’s answer to Robinhood, posted its first quarterly profit

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Freetrade, Britain's answer to Robinhood, posted its first quarterly profit

The Freetrade logo on a smartphone screen.

Rafael Henrique | Sopa Images | Lightrocket | Getty Images

British stock trading app Freetrade hit eked out breakeven earlier this year, the company told CNBC, marking its first-ever move into the black after incurring full-year losses in 2023.

Freetrade reported adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of £100,000 ($124,863) in the first quarter of 2024, according to unaudited financial statements shared with CNBC.

Preliminary revenue hit £6.7 million in the quarter.

Freetrade still generated a loss of £8.3 million in 2023, down from the £28.8 million loss it racked up the year before. Revenues climbed to £21.6 million last year, up 45% from 2022.

“We defied difficult market conditions and delivered healthy growth in 2023 while dramatically reducing losses” in 2022, said Adam Dodds, CEO and founder of Freetrade.

Equity crowdfunders rejoice

The development will be welcome news for Freetrade’s crowdfunding investors, who’ve been looking for an update on the company’s move toward profitability after a tough financial period.

Freetrade saw its valuation reduced by 65% to £225 million ($280.3 million) from £650 million in 2023 in its latest equity crowdfunding round on Crowdcube, with the company blaming a “different market environment” plagued by higher interest rates and inflation.

Net inflows totalled £130 million in the first quarter, too, as retail investor activity grew in response to resurgent markets last year. Assets under administration also reached £1.8 billion.

“Importantly for our crowdfunding investors, we laid out a clear path towards breakeven during our last fundraise,” Dodds said.

“As we look ahead to the rest of 2024, we’ve got major product developments that are going to support our next phase of growth with preparations being made to roll out our web platform.”

Equity markets saw serious drops in 2022 as a result of macroeconomic uncertainty and higher interest rates stoked by Russia’s full-fledged invasion of Ukraine, which triggered a risk-off trade around the world.

Britain’s answer to Robinhood

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OpenAI opens its first Asia office in Japan as a ‘first step’ in its commitment to the region

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OpenAI opens its first Asia office in Japan as a 'first step' in its commitment to the region

In this photo illustration, an OpenAI logo is displayed on a smartphone screen. 

Rafael Henrique | SOPA Images | Lightrocket | Getty Images

OpenAI has opened its first Asian office in Tokyo, Japan as the ChatGPT developer aims to expand its global presence.

“We’re excited to be in Japan which has a rich history of people and technology coming together to do more,” CEO Sam Altman said in the statement released Sunday. “We believe AI will accelerate work by empowering people to be more creative and productive, while also delivering broad value to current and new industries that have yet to be imagined.”

As part of the move, the company has appointed Tadao Nagasaki as the new president of OpenAI Japan, to head commercial and market engagement efforts.

Tokyo was chosen due to “its global leadership in technology, culture of service, and a community that embraces innovation.”

“As a first step in our long-term commitment to the region, we’re providing local businesses with early access to a GPT-4 custom model specifically optimized for the Japanese language,” according to the statement.

“This custom model offers improved performance in translating and summarizing Japanese text, is cost effective, and operates up to 3x faster than its predecessor,” it added.

Japanese corporations like Daikin, Toyota as well as local governments are using ChatGPT to improve their efficiency, the company said.

Altman met with Prime Minister Fumio Kishida last year and reportedly mentioned he was looking into opening a new office in Japan.

The artificial intelligence startup burst into the mainstream after the public launch of the ChatGPT chatbot in late 2022. The company is backed by Microsoft and has a private market valuation that’s reportedly approaching $100 billion.  

Last week, Microsoft said it will be investing $2.9 billion over the next two years to increase its hyperscale cloud computing and AI infrastructure in Japan.

This is the “single largest investment in its 46-year history in Japan, also the site of its first international office,” Microsoft said.

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