An Amazon delivery drone is on display at Amazon’s BOS27 Robotics Innovation Hub in Westborough, Massachusetts, on Nov. 10, 2022.
Joseph Prezioso | AFP | Getty Images
On a recent weekday morning, John Case heard a familiar buzzing outside his quiet suburban home in College Station, Texas. He recognized it immediately as one of Amazon‘s Prime Air drones, whizzing by on its delivery route to unload small packages of batteries, vitamins and dog treats.
“It sounds like a giant hive of bees,” Case, a semi-retired orthodontist, said in an interview. “You know it’s coming because it’s pretty loud.”
Case has lived in College Station for the past 40 years. The drones are a common sight when he and his wife go on their regular walks around the neighborhood. Nurses, police officers and firefighters who work the nightshift talk about it disrupting their sleep during the day, Case said.
Noise complaints are just the latest challenge for Amazon’s drone program that’s been struggling to get off the ground since the company started testing deliveries in 2022. A mix of regulatory hurdles, missed deadlines and layoffs last year, coinciding with widespread cost-cutting efforts by CEO Andy Jassy, has halted progress of the ambitious service, which was conceived of by Amazon founder Jeff Bezos more than a decade ago.
College Station, located about 100 miles northwest of Houston, has been the main testing ground for Prime Air, as Amazon tries to show it can ferry packages by unmanned aircraft to residents’ homes in under an hour. Lockeford, California, south of Sacramento, was supposed to be another test market, but Amazon shuttered its operation there in April. The company is seeking approval from regulators to start deliveries in Tolleson, Arizona, west of Phoenix.
As Amazon prepares to scale up Prime Air and expand it to more areas, it’s encountering another reason why that won’t be so easy. In a July letter to the Federal Aviation Administration, College Station Mayor John Nichols wrote that residents in his city, home to Texas A&M University, have grown tired of the drones loudly buzzing near their homes.
“Since locating in College Station, residents in neighborhoods adjacent to Prime Air’s facility have expressed concern to the City Council regarding drone noise levels, particularly during take-off and landing, as well as in some delivery operations,” Nichols wrote.
Nichols’ letter followed a proposal from Amazon to the FAA to allow the company to increase deliveries to 469 flights per day, up from its current level of 200 flights per day. Amazon is asking for the ability to operate between 7 a.m. and 10 p.m., rather than being limited to daylight hours as the program is today, and to expand its delivery area to up to 174 square miles surrounding the company’s drone port, up from its current operating range of 44 square miles.
A month before Amazon’s request to the FAA, residents appealed to local legislators to intervene in the company’s expansion plans. At a city council meeting in June, Ralph Thomas Moore, whose neighborhood is “less than 500 feet away from the launch pad,” played a recording of a chainsaw to illustrate the noise level of the drones.
If Amazon gets its wish, there would be up to 940 combined takeoffs and landings, all so the drones can deliver one package at a time, weighing no more than five pounds, Moore said at the meeting.
“This is what Amazon is asking the FAA to approve,” he said. “This is a huge invasion of our personal space and has significant impact on everyone in the neighborhood.”
Bryan Woods, College Station’s city manager, said at the meeting that city officials ran tests of a Prime Air drone and found it had noise levels between 47 and 61 decibels. According to the Occupational Safety and Health Administration, chainsaws are typically measured at 125 decibels and heavy equipment at 95 to 110 decibels.
Prime Air is part of Amazon’s effort to find a quicker, more cost-effective solution for the so-called last mile, or the part of the delivery that gets the package from the warehouse to the customer’s doorstep. Proponents say drone delivery can potentially offset the cost of maintaining a fleet of delivery drivers, while cutting down on the need for gas-guzzling delivery vans. That’s assuming Amazon can ever turn it into a service for the masses.
In May, Amazon notched a key milestone when the FAA said it would allow the company to fly its delivery drones over longer distances and without staffers on the ground observing each flight. Amazon heralded the announcement and said it “lays the foundation” for the service to reach new markets.
Sam Stephenson, an Amazon spokesperson, told CNBC in a statement, “We appreciate the community of College Station and take local feedback into account wherever possible when making operational decisions for Prime Air. We’re proud of the thousands of deliveries we’ve made and the hundreds of customers we deliver to.”
‘Fantastic technology, wrong location’
Amina Alikhan likened the drones to “a fly coming by your ear over and over and you can’t make it stop.”
“It is waking us up and disrupting our ability to enjoy both our outdoor and even our indoor spaces,” said Alikhan, an internal medicine doctor who lives with her husband in a neighborhood a few hundred feet from Amazon’s drone airport in College Station.
Case said his neighbors have complained that the sound of the drones makes it hard to enjoy working in the yard or sitting on the patio. Sometimes it’s loud enough to be heard inside. Case said he wrote a letter to the College Station mayor and city council about the matter.
When the city agreed to be a test market for Amazon, “I think nobody really knew how noisy and annoying it was going to be” Case said.
Others said the drones fly alarmingly low. One resident, who serves as the head of a local homeowners association, said Amazon told those in the neighborhood that the drones would fly 400 feet or higher while in operation.
But the drones fly over residential properties at 100 feet or less, which can make it uncomfortable to even lounge by the pool, said the person, who asked not to be named to preserve her privacy.
Amazon unveiled its latest delivery drone at the re:MARS conference in Las Vegas on June 5, 2019.
Amazon
The current iteration of Amazon’s delivery drone typically cruises at an altitude of 160 to 180 feet, according to data submitted by the company to the FAA.
Amazon has said it plans to introduce a smaller, quieter drone, called the MK30, whichisexpected to start running in College Station and Phoenix once the company receives approval from the FAA.
Stephenson said the MK30 is “designed to reduce the drone’s perceived noise by almost half.” It will also fly at a higher cruising altitude of between 180 to 377 feet above ground level, except when descending to drop a package, according to the FAA.
But many residents wanted Amazon to go a step further and get out of their neighborhoods altogether. As concerns grew louder, leaders from Prime Air held a Zoom meeting on July 24 with College Station residents.
Matt McCardle, head of regulatory affairs and strategy for Prime Air, said at the meeting that the company would not renew its lease in College Station and move elsewhere by October 2025, according to a recording obtained by CNBC.
Amazon’s Stephenson confirmed that the company is “considering a variety of potential paths forward,” including the possibility of an alternate drone site.
The company has also agreed to reduce the number of flights per hour, said Bob Yancy, a College Station City Council member. He plans to propose that Amazon move its drone port to the site of a former Macy’s store that’s now owned by the city and located in a nearby shopping mall.
In April, Amazon said it plans to integrate Prime Air into its same-day delivery network, instead of building standalone drone facilities. That’s what the company is aiming to do in the Phoenix area, where its launchpad is expected to be on the same site as an Amazon warehouse known as SAZ2. A couple hundred feet from the facility is a major neighborhood called Roosevelt Park.
Yancy said at the meeting that he still likes the program, and appreciates that he’s been able to have toothbrushes, cookies and bottles of aspirin delivered to his house within an hour.
He wants Prime Air to stay in College Station. But for it to work, he said, Amazon will have to make its drones less noisy or get them far away from residents.
“I think the headline on the program is — fantastic technology, wrong location,” Yancy said.
Hidden among the majestic canyons of the Utah desert, about 7 miles from the nearest town, is a small research facility meant to prepare humans for life on Mars.
The Mars Society, a nonprofit organization that runs the Mars Desert Research Station, or MDRS, invited CNBC to shadow one of its analog crews on a recent mission.
“MDRS is the best analog astronaut environment,” said Urban Koi, who served as health and safety officer for Crew 315. “The terrain is extremely similar to the Mars terrain and the protocols, research, science and engineering that occurs here is very similar to what we would do if we were to travel to Mars.”
SpaceX CEO and Mars advocate Elon Musk has said his company can get humans to Mars as early as 2029.
The 5-person Crew 315 spent two weeks living at the research station following the same procedures that they would on Mars.
David Laude, who served as the crew’s commander, described a typical day.
“So we all gather around by 7 a.m. around a common table in the upper deck and we have breakfast,” he said. “Around 8:00 we have our first meeting of the day where we plan out the day. And then in the morning, we usually have an EVA of two or three people and usually another one in the afternoon.”
An EVA refers to extravehicular activity. In NASA speak, EVAs refer to spacewalks, when astronauts leave the pressurized space station and must wear spacesuits to survive in space.
“I think the most challenging thing about these analog missions is just getting into a rhythm. … Although here the risk is lower, on Mars performing those daily tasks are what keeps us alive,” said Michael Andrews, the engineer for Crew 315.
Formula One F1 – United States Grand Prix – Circuit of the Americas, Austin, Texas, U.S. – October 23, 2022 Tim Cook waves the chequered flag to the race winner Red Bull’s Max Verstappen
Mike Segar | Reuters
Apple had two major launches last month. They couldn’t have been more different.
First, Apple revealed some of the artificial intelligence advancements it had been working on in the past year when it released developer versions of its operating systems to muted applause at its annual developer’s conference, WWDC. Then, at the end of the month, Apple hit the red carpet as its first true blockbuster movie, “F1,” debuted to over $155 million — and glowing reviews — in its first weekend.
While “F1” was a victory lap for Apple, highlighting the strength of its long-term outlook, the growth of its services business and its ability to tap into culture, Wall Street’s reaction to the company’s AI announcements at WWDC suggest there’s some trouble underneath the hood.
“F1” showed Apple at its best — in particular, its ability to invest in new, long-term projects. When Apple TV+ launched in 2019, it had only a handful of original shows and one movie, a film festival darling called “Hala” that didn’t even share its box office revenue.
Despite Apple TV+being written off as a costly side-project, Apple stuck with its plan over the years, expanding its staff and operation in Culver City, California. That allowed the company to build up Hollywood connections, especially for TV shows, and build an entertainment track record. Now, an Apple Original can lead the box office on a summer weekend, the prime season for blockbuster films.
The success of “F1” also highlights Apple’s significant marketing machine and ability to get big-name talent to appear with its leadership. Apple pulled out all the stops to market the movie, including using its Wallet app to send a push notification with a discount for tickets to the film. To promote “F1,” Cook appeared with movie star Brad Pitt at an Apple store in New York and posted a video with actual F1 racer Lewis Hamilton, who was one of the film’s producers.
(L-R) Brad Pitt, Lewis Hamilton, Tim Cook, and Damson Idris attend the World Premiere of “F1: The Movie” in Times Square on June 16, 2025 in New York City.
Jamie Mccarthy | Getty Images Entertainment | Getty Images
Although Apple services chief Eddy Cue said in a recent interview that Apple needs the its film business to be profitable to “continue to do great things,” “F1” isn’t just about the bottom line for the company.
Apple’s Hollywood productions are perhaps the most prominent face of the company’s services business, a profit engine that has been an investor favorite since the iPhone maker started highlighting the division in 2016.
Films will only ever be a small fraction of the services unit, which also includes payments, iCloud subscriptions, magazine bundles, Apple Music, game bundles, warranties, fees related to digital payments and ad sales. Plus, even the biggest box office smashes would be small on Apple’s scale — the company does over $1 billion in sales on average every day.
But movies are the only services component that can get celebrities like Pitt or George Clooney to appear next to an Apple logo — and the success of “F1” means that Apple could do more big popcorn films in the future.
“Nothing breeds success or inspires future investment like a current success,” said Comscore senior media analyst Paul Dergarabedian.
But if “F1” is a sign that Apple’s services business is in full throttle, the company’s AI struggles are a “check engine” light that won’t turn off.
Replacing Siri’s engine
At WWDC last month, Wall Street was eager to hear about the company’s plans for Apple Intelligence, its suite of AI features that it first revealed in 2024. Apple Intelligence, which is a key tenet of the company’s hardware products, had a rollout marred by delays and underwhelming features.
Apple spent most of WWDC going over smaller machine learning features, but did not reveal what investors and consumers increasingly want: A sophisticated Siri that can converse fluidly and get stuff done, like making a restaurant reservation. In the age of OpenAI’s ChatGPT, Anthropic’s Claude and Google’s Gemini, the expectation of AI assistants among consumers is growing beyond “Siri, how’s the weather?”
The company had previewed a significantly improved Siri in the summer of 2024, but earlier this year, those features were delayed to sometime in 2026. At WWDC, Apple didn’t offer any updates about the improved Siri beyond that the company was “continuing its work to deliver” the features in the “coming year.” Some observers reduced their expectations for Apple’s AI after the conference.
“Current expectations for Apple Intelligence to kickstart a super upgrade cycle are too high, in our view,” wrote Jefferies analysts this week.
Siri should be an example of how Apple’s ability to improve products and projects over the long-term makes it tough to compete with.
It beat nearly every other voice assistant to market when it first debuted on iPhones in 2011. Fourteen years later, Siri remains essentially the same one-off, rigid, question-and-answer system that struggles with open-ended questions and dates, even after the invention in recent years of sophisticated voice bots based on generative AI technology that can hold a conversation.
Apple’s strongest rivals, including Android parent Google, have done way more to integrate sophisticated AI assistants into their devices than Apple has. And Google doesn’t have the same reflex against collecting data and cloud processing as privacy-obsessed Apple.
Some analysts have said they believe Apple has a few years before the company’s lack of competitive AI features will start to show up in device sales, given the company’s large installed base and high customer loyalty. But Apple can’t get lapped before it re-enters the race, and its former design guru Jony Ive is now working on new hardware with OpenAI, ramping up the pressure in Cupertino.
“The three-year problem, which is within an investment time frame, is that Android is racing ahead,” Needham senior internet analyst Laura Martin said on CNBC this week.
Apple’s services success with projects like “F1” is an example of what the company can do when it sets clear goals in public and then executes them over extended time-frames.
Its AI strategy could use a similar long-term plan, as customers and investors wonder when Apple will fully embrace the technology that has captivated Silicon Valley.
Wall Street’s anxiety over Apple’s AI struggles was evident this week after Bloomberg reported that Apple was considering replacing Siri’s engine with Anthropic or OpenAI’s technology, as opposed to its own foundation models.
The move, if it were to happen, would contradict one of Apple’s most important strategies in the Cook era: Apple wants to own its core technologies, like the touchscreen, processor, modem and maps software, not buy them from suppliers.
Using external technology would be an admission that Apple Foundation Models aren’t good enough yet for what the company wants to do with Siri.
“They’ve fallen farther and farther behind, and they need to supercharge their generative AI efforts” Martin said. “They can’t do that internally.”
Apple might even pay billions for the use of Anthropic’s AI software, according to the Bloombergreport. If Apple were to pay for AI, it would be a reversal from current services deals, like the search deal with Alphabet where the Cupertino company gets paid $20 billion per year to push iPhone traffic to Google Search.
The company didn’t confirm the report and declined comment, but Wall Street welcomed the report and Apple shares rose.
In the world of AI in Silicon Valley, signing bonuses for the kinds of engineers that can develop new models can range up to $100 million, according to OpenAI CEO Sam Altman.
“I can’t see Apple doing that,” Martin said.
Earlier this week, Meta CEO Mark Zuckerberg sent a memo bragging about hiring 11 AI experts from companies such as OpenAI, Anthropic, and Google’s DeepMind. That came after Zuckerberg hired Scale AI CEO Alexandr Wang to lead a new AI division as part of a $14.3 billion deal.
Meta’s not the only company to spend hundreds of millions on AI celebrities to get them in the building. Google spent big to hire away the founders of Character.AI, Microsoft got its AI leader by striking a deal with Inflection and Amazon hired the executive team of Adept to bulk up its AI roster.
Apple, on the other hand, hasn’t announced any big AI hires in recent years. While Cook rubs shoulders with Pitt, the actual race may be passing Apple by.
Tesla CEO Elon Musk speaks alongside U.S. President Donald Trump to reporters in the Oval Office of the White House on May 30, 2025 in Washington, DC.
Kevin Dietsch | Getty Images
Tesla CEO Elon Musk, who bombarded President Donald Trump‘s signature spending bill for weeks, on Friday made his first comments since the legislation passed.
Musk backed a post on X by Sen. Rand Paul, R-Ky., who said the bill’s budget “explodes the deficit” and continues a pattern of “short-term politicking over long-term sustainability.”
The House of Representatives narrowly passed the One Big Beautiful Bill Act on Thursday, sending it to Trump to sign into law.
Paul and Musk have been vocal opponents of Trump’s tax and spending bill, and repeatedly called out the potential for the spending package to increase the national debt.
The independent Congressional Budget Office has said the bill could add $3.4 trillion to the $36.2 trillion of U.S. debt over the next decade. The White House has labeled the agency as “partisan” and continuously refuted the CBO’s estimates.
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The bill includes trillions of dollars in tax cuts, increased spending for immigration enforcement and large cuts to funding for Medicaid and other programs.
It also cuts tax credits and support for solar and wind energy and electric vehicles, a particularly sore spot for Musk, who has several companies that benefit from the programs.
“I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!” Trump wrote in a social media post in early June as the pair traded insults and threats.
Shares of Tesla plummeted as the feud intensified, with the company losing $152 billion in market cap on June 5 and putting the company below $1 trillion in value. The stock has largely rebounded since, but is still below where it was trading before the ruckus with Trump.
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Tesla one-month stock chart.
— CNBC’s Kevin Breuninger and Erin Doherty contributed to this article.