There’s a new warehouse robot at Amazon that has a sense of touch, allowing it to handle a job previously only done by humans. Amazon unveiled the robot, called Vulcan, Wednesday at an event in Germany.
CNBC got an exclusive first look at Vulcan in April, as it stowed items into tall, yellow bins at a warehouse in Spokane, Washington. An up-close look at the “hand” of the robot reveals how it can feel the items it touches using an AI-powered sensor to determine the precise pressure and torque each object needs.
This innovative gripper helps give Vulcan the ability to manipulate 75% of the 1 million unique items in inventory at the Spokane warehouse. Amazon has used other robotic arms inside its warehouses since 2021, but those rely on cameras for detection and suction for grasp, limiting what types of objects they can handle.
Vulcan can also operate 20 hours a day, according to Aaron Parness, who heads up the Amazon Robotics team that developed the machine.
Aaron Parness, Director of Amazon Robotics, shows CNBC’s Katie Tarasov the gripper of its newest robot, Vulcan, at an Amazon warehouse in Spokane, Washington, on April 17, 2025.
Joseph Huerta
Still, Parness told CNBC that instead of replacing people in its warehouses, Vulcan will create new, higher skilled jobs that involve maintaining, operating, installing and building the robots.
When asked if Amazon will fully automate warehouses in the future, Parness said, “not at all.”
“I don’t believe in 100% automation,” he said. “If we had to get Vulcan to do 100% of the stows and picks, it would never happen. You would wait your entire life. Amazon understands this.”
The goal is for Vulcan to handle 100% of the stowing that happens in the top rows of bins, which are difficult for people to reach, Parness said. Limiting workers to stowing on mid-height shelves, the so-called power zone, could lower the chance for worker injuries. Amazon has long struggled with injury rates far higher than those at other warehouses, though the company claims those rates have improved significantly.
“We have a ladder that we have to step onto several dozen times a day during your ten hour shift. There is a lot of reaching. We have to lunge and squat. So it’s a lot of tough body mechanics,” said Kari Freitas Hardy, an Amazon worker in Spokane. “As a picker, if I had an innovation like this where I could have stayed within my power zone, my days would have been just so much easier.”
Amazon said Vulcan is operating at about the same speed as a human worker and can handle items up to 8 pounds. It operates behind a fence, sequestered from human workers to reduce the risk of accidents.
Experts agree that humans will work alongside robots in warehouses like Amazon’s for the foreseeable future.
“Whereas if you build a terribly complicated automated system and it breaks, then everything stops,” said Bill Ray, a researcher at Gartner. “Taking out the last human is so expensive. It’s so disruptive. It would be a huge investment and an enormous risk.”
Freitas Hardy recently transitioned from picking items to working with the robots. She’s one of the 350,000 workers Amazon said it’s spent $1.2 billion to upskill since 2019.
“It would be many decades off, to have them just come in and take over, so at this point it’s more exciting if you ask me, to see the growth potential because that is where it does increase jobs on the back side,” Freitas Hardy said.
Although Freitas Hardy said she isn’t making more money in her new role, Amazon said others who participate in its Mechatronics and Robotics Apprenticeship program typically receive pay increases of about 40%.
Amazon said the team that developed Vulcan has grown from a handful of people to more than 250 employees in the three years since the project began. Amazon wouldn’t disclose how much it cost to develop Vulcan, but Parness said it represents a big business opportunity.
“Vulcan can interact with the world in a more human-like manner, and that gives us a lot more process paths that we can use automation to bring down the cost that our customer pays, and the speed with which we can deliver those products to our customers,” Parness said.
Another big return on investment may come from robots making fewer mistakes than humans.
“Product returns are incredibly high and product returns are incredibly expensive,” Gartner’s Ray said. “Some of them will be because the wrong thing was put in the box. And if you can reduce that, that’s a real cost saving straight away.”
Meanwhile, Amazon’s humanoid robot Digit has yet to bring operational efficiency. Amazon announced in 2023 that it was testing the Agility Robotics bipedal robot to help organize and move totes, but it’s yet to deploy Digit at scale.
When asked if Vulcan indicates that robots have moved from gimmick to real world application, Parness said, “It doesn’t matter if the robot has legs or wheels or it’s bolted to the floor. I think the thing that makes the robot useful is having that sense of touch so that it can interact in high contact and high clutter environments. That’s the tipping point for me, and I think we’re right there.”
For now, Vulcan is only in full operation at the Spokane warehouse. Another version of Vulcan that can pick specific items from inventory is being tested in Hamburg, Germany. Amazon said it plans to add Vulcan in more U.S. and German facilities in 2026.
Watch the video for an in-depth look at exactly how Vulcan works: https://www.cnbc.com/video/2025/05/06/meet-vulcan-the-first-amazon-robot-with-a-sense-of-touch.html
Rene Haas, CEO of chip tech provider Arm Holdings, holds a replica of a chip with his company’s logo on it, during an event in which Malaysia’s Prime Minister Anwar Ibrahim officially announces a $250 million deal with the company, in Kuala Lumpur, Malaysia March 5, 2025.
Hasnoor Hussain | Reuters
Arm shares dropped more than 8% in extended trading on Wednesday after the chip-design company issued weaker-than-expected guidance for the current quarter.
Here’s how the company did in the fiscal fourth quarter compared with LSEG consensus:
Earnings per share: 55 cents, adjusted vs. 52 cents expected
Revenue: $1.24 billion vs. $1.23 billion
While Arm topped estimates for the quarter ended March 31, Wall Street is looking ahead to the company’s forecast for the first quarter.
Arm said revenue will be between $1 billion and $1.1 billion. The middle of the range is below the $1.1 billion average analysts estimated, according to LSEG. Earnings per share will be between 30 cents and 38 cents, while analysts were expecting 42 cents.
SoftBank controls about 90% of Arm, and took the company public in 2023. It now has a market cap of over $130 billion as of Wednesday’s close.
Arm designs the fundamental architecture upon which many chips are built, and sells licenses for its designs to companies such as Qualcomm and Nvidia, charging royalty fees on each sale they make. The company claims 99% of premium smartphones are powered by Arm technology.
Royalty revenue in the quarter rose 18% from a year earlier to $607 million.
Net income fell 6% to $210 million, or 20 cents a share, from $224 million, or 21 cents, in the year-ago quarter. Revenue jumped 34% from $928 million a year earlier.
Thomas Fuller | SOPA Images | Lightrocket | Getty Images
AppLovin shares soared as high as 15% in extended trading after the company reported earnings and revenue that beat expectations and announced the sale of its mobile gaming business.
Here’s how the company did compared to LSEG consensus estimates:
Earnings: $1.67 per share vs $1.45 per share expected
Revenue: $1.48 billion vs $1.38 billion expected
AppLovin also agreed on Wednesday to sell its mobile gaming business to Tripledot Studios in a deal worth $400 million in cash considerations. The advertising tech company will also obtain a roughly 20% ownership stake in Tripledot Studios, which makes mobile games like Sudoko Friends, Puzzletime and Solitaire Classic.”
The deal is expected to close in the second quarter of 2025.
AppLovin said second-quarter sales should come in the range of $1.2 billion to $1.22 billion, trailing analysts expectations of $1.38 billion.
The company reported first-quarter net income of $576 million, or $1.67 per share, up from $234 million, or 67 cents per share, in the same quarter of 2024.
AppLovin total costs and expenses for the first quarter came in at $820.55 million, representing a 14% increase from the previous year during the same quarter.
The ad-tech firm said in February that it had signed a term sheet to sell its apps business for “total estimated consideration” of $900 million, which included $500 million in cash.
AppLovin’s business has been split between advertising and apps, which is primarily made up of game studios that the company has acquired over the years. With the historic growth in its advertising unit, due to rapid advancements in artificial intelligence, the apps business had become much less important.
The company logged $1.16 billion in first-quarter advertising sales, up from the $678 million it recorded a year ago during the same period.
Sales of the company’s apps-related business for the quarter came in at $325 million, which was a 14% decline from the prior year.
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Nvidia CEO Jensen Huang (R) speaks alongside US President Donald Trump speaks about investing in America, at the White House in Washington, DC, on April 30, 2025.
Jim Watson | AFP | Getty Images
Nvidia shares rose on Wednesday on a report that the Trump administration plans to revise a set of chip trade restrictions called the “AI diffusion” rule.
The rule, which was proposed in the last days of the Biden administration, organizes countries into three different tiers, all of which have different restrictions on whether advanced AI chips like those made by Nvidia, AMD, and Intel can be shipped to the country without a license.
The Trump administration plans to rescind the rule, Bloomberg reported on Wednesday. The chip restrictions were scheduled to take effect on May 15.
Nvidia had no comment on the reported move by the Trump administration.
Chipmakers including Nvidia and AMD have been against the rule.
AMD CEO Lisa Su told CNBC on Wednesday that the U.S. should strike a balance between restricting access to chips for national security and providing access, which will boost the American chip industry.
Nvidia CEO Jensen Huang said earlier this week that being locked out of the Chinese AI market would be a “tremendous loss.”