Workers picket in front of an Amazon Logistic Station on December 19, 2024 in Skokie Illinois.
Scott Olson | Getty Images
Italo Medelius-Marsano was a law student at North Carolina Central University in 2022, when he took a job at an Amazon warehouse near the city of Raleigh to earn some extra cash.
The past month has been unlike any other during his three-year tenure at the company. Now, when he shows up for his shift at the shipping dock, Medelius-Marsano says he’s met with flyers and mounted TVs urging him to “vote no,” as well as QR codes on workstations that lead to an anti-union website. During meetings, managers discourage unionization.
The facility in the suburb of Garner, North Carolina, employs roughly 4,700 workers and is the site of Amazon’s latest labor showdown. Workers at the site are voting this week on whether to join Carolina Amazonians United for Solidarity (CAUSE), a grassroots union made up of current and former employees.
CAUSE organizers started the group in 2022 in an effort to boost wages and improve working conditions. Voting at the site, known as RDU1, wraps up on Saturday.
Workers at RDU1 and other facilities told CNBC that Amazon is increasingly using digital tools to deter employees from unionizing. That includes messaging through the company’s app and workstation computers. There’s also automated software and handheld package scannersused to track employee performance inside the warehouse, so the company knows when staffers are working or doing something else.
“You cannot get away from the anti-union propaganda or being surveilled, because when you walk into work they have cameras all over the building,” said Medelius-Marsano, who is an organizer with CAUSE. “You can’t get into work without scanning a badge or logging into a machine. That’s how they track you.”
CAUSE representatives have also made their pitch to RDU1 employees. The union has set up a “CAUSE HQ” tent across the street from the warehouse and disbursed leaflets in the facility’s break room.
Amazon, the nation’s second-largest private employer, has long sought to keep unions out of its ranks. The strategy succeeded in the U.S. until 2022, when workers at a Staten Island warehouse voted to join the Amazon Labor Union. Last month, workers at a Whole Foods store in Philadelphia voted to join the United Food and Commercial Workers union.
In December, Amazon delivery and warehouse workers at nine facilities went on strike, organized by the Teamsters, during the height of the holiday shopping season to push the company to the bargaining table. The strike ended on Christmas Eve.
Union elections at other Amazon warehouses in New York have finished in defeat in recent years, while the results of a union drive at an Alabama facility are being contested. Organizers have pointed to Amazon’s near-constant monitoring of employees as both a catalyst and a deterrent of union campaigns.
The NLRB has 343 open or settled unfair labor practice charges filed with the agency against Amazon, its subsidiaries and contracted delivery companies in the U.S., a spokesperson said.
Amazon has argued in legal filings that the NLRB, which issues complaints against companies or unions determined to have violated labor law, is unconstitutional. Elon Musk’s SpaceX, Starbucks and Trader Joe’s have also made similar claims that challenge the agency’s authority.
Amazon spokeswoman Eileen Hards said the company’s employees can choose whether or not to join a union.
“We believe that both decisions should be equally protected which is why we talk openly, candidly and respectfully about these topics, actively sharing facts with employees so they can use that information to make an informed decision,” Hards said in a statement.
Hards said the company doesn’t retaliate against employees for union activities, and called claims that its employee monitoring discourages them from unionizing “odd.”
“The site is operating, so employees are still expected to perform their usual work,” Hards said in a statement. “Further, the camera technology in our facilities isn’t to surveil employees — it’s to help guide the flow of goods through the facilities and ensure security and safety of both employees and inventory.”
Orin Starn, a CAUSE organizer who was fired by Amazon early last year for violating the company’s drug and alcohol policy, called Amazon’s employee tracking “algorithmic management of labor.” Starn is an anthropology professor at Duke University who began working undercover at RDU1 in 2023 to conduct research for a book on Amazon.
“Where 100 years ago in a factory you would’ve had a supervisor come around to tell you if you’re slacking off, now in a modern warehouse like Amazon, you’re tracked digitally through a scanner,” Starn said.
‘Just the algorithm’
John Logan, a professor and director of labor and employment studies at San Francisco State University, told CNBC in an email that Amazon has “perfected the weaponization” of technology, workplace surveillance and algorithmic management during anti-union campaigns “more than any other company.”
While Amazon may be more sophisticated than others, “the use of data analytics is becoming far more common in anti-union campaigns across the country,” Logan said. He added that it’s “extremely common” for companies to try to improve working conditions or sweeten employee perks during a union drive.
Other academics are paying equally close attention to the issue. In a research paper published last week, Northwestern University PhD candidate Teke Wiggin explored Amazon’s use of algorithms and digital devices at the company’s BHM1 warehouse in Bessemer, Alabama.
“The black box and lack of accountability that comes with algorithmic management makes it harder for a worker or activist to decide if they’re being retaliated against,” Wiggin said in an interview. “Maybe their schedule changes a little bit, work feels harder than it used to, the employer can say that has nothing to do with us, that’s just the algorithm. But we have no idea if the algorithm has changed.”
People protest in support of the unionizing efforts of the Alabama Amazon workers, in Los Angeles, California, March 22, 2021.
Lucy Nicholson | Reuters
Some Amazon employees see the situation differently. Storm Smith works at RDU1 as a process assistant, which involves monitoring worker productivity and safety. Amazon referred Smith to CNBC in the course of reporting this story.
Amazon’s workplace controls, like rate and time off task, are “part of the job,” Smith said. Staffers are “always welcome” to ask her what their rate is, she added.
“For my people, if I see your rate is not where it’s supposed to be, I’ll come up to you and say, ‘Hey, this is your rate, are you feeling alright? Is there anything I could get you to get your rate up? Like a snack, a drink, whatever,” Smith said.
Wiggin interviewed 42 BHM1 employees following the first election in 2021, and reviewed NLRB records of hearings. The facility employed more than 5,800 workers at the time of the union drive.
The NLRB last November ordered a third union vote to be held at BHM1 after finding Amazon improperly interfered in two previous elections. The company has denied wrongdoing.
Amazon staffers told Wiggin that during the union campaign, the company tweaked some performance expectations to “improve working conditions” and dissuade them from unionizing. One employee said these changes were partly why he voted against the union, according to the study.
Workers at an Amazon warehouse outside St. Louis, Missouri, filedan NLRB complaint in May. The employees accused Amazon of using “intrusive algorithms” that track when they’re working to discourage them from organizing, The Guardian reported. The employees withdrew their complaint on Tuesday.
Hards said Amazon doesn’t require employees to meet specific productivity speeds or targets.
Lawmakers zeroed in on how surveillance can impact organizing efforts in recent years. In 2022, the former NLRB general counsel issued a memo calling for the group to address corporate use of “omnipresent surveillance and other algorithmic-management tools” to disrupt organizing efforts. The following year, the Biden Administration put out a request for information on automated worker surveillance and management, noting that the systems can pose risks to employees, including “their rights to form or join a labor union.”
However, the Trump administration is attempting to purge the NLRB, with the president firing the chair of the organization on his first day in office last month. Trump hasput Musk, a notorious opponent of unions, in charge of the so-called Department of Government Efficiency, with the goal of cutting government costs and slashing regulations.
Fired by an app
One of the most direct ways Amazon is able to disseminate anti-union messages is through the AtoZ app, which is an essential tool in their daily work.
The app is used by warehouse workers to access pay stubs and tax forms, request schedule changes or vacation time, post on the “Voice of the Associate” message board, and communicate with human resources.
Jennifer Bates, a prominent union organizer at BHM1, learned Amazon fired her through AtoZ in 2023. She was later reinstated by Amazon “after a full review of her case,” and provided backpay, Hards said.
Jennifer Bates, an Amazon.com, Inc. fulfillment center employee, stands for a portrait at the Retail, Wholesale and Department Store Union (RWDSU) office in Birmingham, Alabama on March 26, 2021.
Patrick T. Fallon | AFP | Getty Images
The Retail, Wholesale and Department Store Union, which sought to represent BHM1 workers, has said the AtoZ app can access a user’s GPS, photos, camera, microphone and WiFi-connection information. The union also claims that “Amazon can sell the data collected to any third party companies and that data cannot be deleted.” The technology raises several concerns, including that it may suppress “the right to organize,” RWDSU said.
Hards said the RWDSU’s claims are inaccurate and denied that the company sells any data affiliated with AtoZ use. She said AtoZ users must give the app permission to access things like their GPS location.
At the Garner facility, the AtoZ app has been plastered with “anti-union propaganda” since the RDU1 election was announced last month, Medelius-Marsano said.
One AtoZ message suggested employees’ benefits could be at risk if they voted in a union, while another described CAUSE as an “outside party” that’s “claiming to be a union.”
RDU1 site leader Kristen Tettemer said in another message that a group like CAUSE “can get in the way of how we work together,” and that “once in, a union is very difficult to remove.” Smith said Amazon’s response to the union drive has been centered around “putting out the facts and telling you to do your research.”
Medelius-Marsano said it all amounts to an environment of intimidation.
“There’s no doubt about it,” Medelius-Marsano said. “If we lose, fear is going to be the reason.”
The Alibaba office building in Nanjing, Jiangsu province, China, on Aug 28, 2024.
CFOTO | Future Publishing | Getty Images
Alibaba Cloud launched Thursday its latest AI model in its “Qwen series,” as large language model competition in China continues to heat up following the “DeepSeek moment.”
The new “Qwen2.5-Omni-7B” is a multimodal model, which means it can process inputs, including text, images, audio and videos, while generating real-time text and natural speech responses, according to an announcement on Alibaba Cloud’s website.
The company says that the model can be deployed on edge devices like mobile phones, offering high efficiency without compromising performance.
“This unique combination makes it the perfect foundation for developing agile, cost-effective AI agents that deliver tangible value, especially intelligent voice applications,” Alibaba said.
For example, it could be used to help a visually impaired person navigate their environment through real-time audio description, the company added.
The new model is open-sourced on the platforms Hugging Face and Github, following a growing trend in China after DeepSeek made its breakthrough R1 model open-source.
Open-source generally refers to software in which the source code is made freely available on the web for possible modification and redistribution. Over the past years, Alibaba Cloud says it has open-sourced over 200 generative AI models.
Amid China’s AI fervor accelerated by DeepSeek, Alibaba and other generative AI competitors have been releasing new, cost-effective models and products at an unprecedented pace.
Last week, Chinese tech giant Baidureleased a new multimodal foundational model and its first reasoning-focused model.
Alibaba, meanwhile, debuted its updated Qwen 2.5 artificial intelligence model in late January and released a new version of its AI assistant tool Quark earlier this month.
The company has strongly committed to its AI strategy, announcing last month a plan to invest $53 billion in its cloud computing and AI infrastructure over the next three years, exceeding what it spent in the space over the past decade.
Kai Wang, Asia senior equity analyst at Morningstar, told CNBC that large Chinese tech players such as Alibaba, which build data centers to meet the computing needs of AI in addition to building their own LLMs, are well positioned to benefit from China’s post-DeepSeek AI boom.
Alibaba secured a major win for its AI business last month when it confirmed that the company was partnering with Apple to roll out AI integration for iPhones sold in China.
On Wednesday, the group also reported an expanded strategic partnership with BMW to accelerate the integration of its AI into the carmaker’s next-generation intelligent vehicles.
With 250,000 highly-desired Nvidia graphics processors, CoreWeave has become one of the most prominent “GPU clouds,” a status it hopes investors will value when it debuts on the public markets.
But the world of artificial intelligence hardware is moving so quickly that it raises questions about how long those chips will remain on the cutting edge and in demand. It’s a concern that could impact investor demand for shares of CoreWeave, one of the most anticipated IPOs in years.
CoreWeave, which rents out remote access to computers based on Nvidia AI chips,said in a financial filing this monththat most of its AI chips are from Nvidia’s Hopper generation. Those chips, such as the H100, were state-of-the-art in 2023 and 2024. They were scarce as AI companies bought or rented all the chips they could get in the wake of OpenAI ushering in the generative AI age with the release of ChatGPT in late 2022.
But these days, Nvidia CEO Jensen Huang says that his company’s Hopper chips are getting blown out of the water by their successors – the Blackwell generation of GPUs, which have been shipping since late 2024. Hopper chips are “fine” for some circumstances but “not many,” Huang joked at Nvidia’s GTC conference last week.
“In a reasoning model, Blackwell is 40 times the performance of Hopper. Straight up. Pretty amazing,” Huang said. “I said before that when Blackwell starts shipping in volume, you couldn’t give Hoppers away.”
That’s great for Nvidia, which needs to find ways to keep selling chips to the companies committed to the AI race, but it’s bad news for GPU clouds like CoreWeave. That’s because the New Jersey company models the future trajectory of its business based on how much it anticipates being able to rent Nvidia chips out for over the next five to six years.
Huang may have been kidding, but Nvidia spent much of its event detailing just how much better its Blackwell chips are. In Nvidia’s view, the best way to decrease the high cost of serving AI is by buying faster chips.
Blackwell systems are in full production and shipping to customers, and Nvidia plans to introduce an upgraded version of Blackwell in late 2026. When new chips come out, the older chips — the kind CoreWeave has a quarter of a million of — go down in price, Huang said. So too does the price of renting them.
Older chips don’t just stop working when new ones come out. Most companies, including CoreWeave, plan to use Hopper chips for six years. But Nvidia is telling customers that its newer, faster chips are capable of producing more AI content, which leads to more revenues at a better margin for clouds.
An H100 would have to be priced 65% lower per hour than an Nvidia Blackwell GB200 NVL system for the two systems to be competitive in price per output to a renter. Put another way, the H100 would have to rent at 98 cents per hour to match the price per output of a Blackwell rack system priced at $2.20 per hour per GPU, SemiAnalysis estimated, speaking generally about AI rentals.
H100s rented for as much as $8 per hour back in 2023 and often required long commitments and lead times, but now, usage of those chips can be summoned in minutes with a credit card. Some services now offer rented H100 access for under $2 per hour.
The industry could be entering a period where the useful life of AI chips is reduced, Barclays analyst Ross Sandler wrote in a note on Friday. He was focused on hyperscalers — Meta, Google and Amazon — but the trend affects smaller cloud providers like CoreWeave, too.
“These assets are becoming obsolete at a much more rapid pace given how much innovation and speed improvements happen with each generation,” Sandler wrote.
This threatens company earnings if they end up depreciating older equipment faster, he said.
CoreWeave says that if there were to be changes to the “significant” assumptions it makes about the useful lifetime of its AI infrastructure, it could hurt its business or future prospects. CoreWeave has also borrowed nearly $8 billion to buy Nvidia chips and build its data centers, sometimes using the GPUs it amassed as collateral.
Analysts and investors are also increasingly asking questions about the useful lifespan of these new AI systems and whether their financial depreciation schedules should be accelerated because the technology is improving so fast.
CoreWeave says in its filing that it seeks to offer state-of-the-art infrastructure and says it will continue spending to expand and improve its data centers.
“Part of this process entails cycling out outdated components of our infrastructure and replacing them with the latest technology available,” the New Jersey company said. “This requires us to make certain estimates with respect to the useful life of the components of our infrastructure and to maximize the value of the components of our infrastructure, including our GPUs, to the fullest extent possible.”
CoreWeave and Nvidia maintain a good relationship. CoreWeave will certainly buy more chips from Nvidia, which owns more than 5% of the New Jersey company.
“We’re super proud of them,” Huang said last week.
But Nvidia’s road map for releasing new chips that it proudly touts will make their predecessors obsolete is a threat to CoreWeave’s ambitions.
U.S. President Donald Trump speaks to the media in the Oval Office at the White House in Washington, D.C., U.S., March 26, 2025.
Evelyn Hockstein | Reuters
After President Donald Trump said on Wednesday he would impose 25% tariffs on “all cars that are not made in the United States,” he said his key advisor, Tesla CEO Elon Musk, had not weighed in on the matter, “because he may have a conflict.”
He added that Musk had never “asked me for a favor in business whatsoever.”
Musk serves as a senior advisor to President Donald Trump, having earlier contributed $290 million to propel him back to the White House. While Musk remains at the helm of his companies, including SpaceX and Tesla, he is also leading the Department of Government Efficiency (DOGE), which is an effort to slash federal government spending, personnel and consolidate or eliminate various federal agencies and services.
Earlier this month, President Donald Trump turned the South Lawn of the White House into a temporary Tesla showroom. The company delivered five of its electric vehicles there for the president to inspect after he had declared, in a post on Truth Social, that he would buy a Tesla to show support for Musk and the business. Musk stood by his side while Trump called the vehicles “beautiful” and praised the unorthodox design of the angular, steel Tesla Cybertruck.
When asked by reporters whether the new tariffs would be good for Musk’s autos business, Tesla, President Donald Trump said they may be “net neutral or they may be good.” He pointed to Tesla’s vehicle assembly plants in Austin, Texas and Fremont, California and opined that, “anybody that has plants in the United States — it’s going to be good for them.”
Tesla recently wrote, in a letter to the U.S. Trade Representative, that “even with aggressive localization” of its supply chain domestically, “certain parts and components are difficult or impossible to source within the United States.” The company urged the USTR to “consider the downstream impacts of certain proposed actions taken to address unfair trade practices.”
Tesla and other automakers commonly buy headlamps, automotive glass, brakes, body panels, suspension parts, and printed circuit boards for various electrical systems in their vehicles from foreign suppliers in Mexico, Canada and China, especially.
Musk and Tesla did not immediately respond to a request for comment about how the new 25% tariffs may impact their business.
Tesla faces an onslaught of competition with more automakers selling fully electric models than ever before. However, the company’s most formidable rival in battery electric vehicles, BYD in China, has never been authorized to sell its electric cars in the United States.
Detroit automakers General Motors and Ford saw their shares falling in after hours trading, while EV makers Tesla and Rivian saw shares nearly flat or slightly higher in response to the tariffs announcement.