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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 scanners used 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.

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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’sextremely 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, filed an 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 has put 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

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.”

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Intel shares pop 16% on report Broadcom and Taiwan Semi could break up company

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Intel shares pop 16% on report Broadcom and Taiwan Semi could break up company

Dado Ruvic | Reuters

Intel shares rallied 16% on Tuesday following a Wall Street Journal report that both Broadcom and Taiwan Semiconductor Manufacturing are potentially weighing bids that could result in splitting the embattled chipmaker.

The stock was on pace for its best day since March 2020.

The Wall Street Journal reported that Broadcom may consider a play for the company’s chip design and marketing segment, citing people familiar with the matter, while TSMC is interested in a stake or complete control of Intel’s factories. The companies have not filed bids and talks are largely informal, the Journal reported.

The iconic American chipmaker’s stock has continued to sink lower in recent years, shedding billions in market value. Intel fell behind on the artificial intelligence tailwinds that have swept up the broader semiconductor sector.

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Law firm repping Tesla drafts Delaware bill that could salvage Musk pay package

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Law firm repping Tesla drafts Delaware bill that could salvage Musk pay package

Elon Musk leaves after a meeting with Indian Prime Minister Narendra Modi at Blair House, in Washington, D.C., U.S., February 13, 2025. 

Nathan Howard | Reuters

A law firm that represents Tesla and Elon Musk has written proposed legislation that would alter Delaware corporate law, according to a person directly familiar with the drafting of the bill.

The proposed legislation, drafted by Richards, Layton & Finger, or RLF, would amend Delaware General Corporation Law, and if adopted, could pave the way for the reinstatement of Musk’s 2018 CEO pay package at Tesla, worth tens of billions in options.

RLF confirmed their involvement to CNBC.

“Statutory changes are necessary to restore the core principles that have been the hallmark of Delaware for over a century and ensure that Delaware remains the preeminent jurisdiction for incorporation,” Lisa Schmidt, president of RLF, said in a statement.

The bill was introduced to the Delaware General Assembly on Monday and would require approval by the state’s two chambers as well as Gov. Matt Meyer before becoming a law.

The pay package Tesla granted to Musk in 2018 was the largest CEO compensation plan in public corporate history, but the it was ordered to be rescinded last year by the Delaware Court of Chancery.

In her ruling, Chancellor Kathaleen McCormick wrote that the pay plan was inappropriately set by Tesla’s board, which was controlled by Musk, and that it was approved by shareholders who were misled by Tesla’s proxy materials before they were asked to vote on it.

Under the proposed legislation, Musk might no longer be considered a “controller” of Tesla, said Brian JM Quinn, Boston College Law professor. Transactions that involve self-dealing with controllers or directors would be subject to less review than they are now, Quinn said. Those transactions range from going-private deals, to mergers and acquisitions, and board and executive compensation decisions.

“The real role of corporate law is to protect minority investors,” Quinn said. “With this bill, the legislature is saying ‘Now you know what? Protect them less.'”

The proposed legislation would also limit the documents that minority stakeholders are able to obtain through “books and records” inspection requests, Quinn said. Those stakeholders would be limited to formal items like a certificate of incorporation or minutes of stockholder meetings but they’d lose access to informal communications like emails or other messages between board members and executives, Quinn said. 

After the Court of Chancery’s ruling last year, Musk started a campaign against companies incorporating in Delaware and moved the site of incorporation for his businesses out of the state. He has aimed his ire at Chancellor McCormick with repeated and disparaging posts about her on X, his social network.

Other prominent executives, including Coinbase CEO Brian Armstrong and Bill Ackman of Pershing Square, have also voiced criticism of the Delaware judiciary. 

“Delaware has taken some heat for supposedly being too hard on controller transactions,” said Renee Zaytsev, partner at Boies Schiller and co-chair of the firm’s securities and shareholder dispute practice. 

“These amendments seem to be a course correction that would make it significantly easier for boards and controllers to avoid judicial scrutiny of their transactions,” she said.

Tesla and Musk did not respond to requests for comment.

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Musk’s xAI releases artificial intelligence model Grok 3, claims better performance than rivals in early testing

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Musk’s xAI releases artificial intelligence model Grok 3, claims better performance than rivals in early testing

Muhammed Selim Korkutata | Anadolu | Getty Images

Elon Musk’s xAI on Tuesday unveiled its latest artificial intelligence model, Grok 3, claiming it can outperform offerings from OpenAI and China’s DeepSeek based on early testing, which included standardized tests on math, science and coding. 

“We’re very excited to present Grok 3, which is, we think, an order of magnitude more capable than Grok 2 in a very short period of time,” Musk said at a demonstration of Grok 3 that was streamed on his social media platform X. 

The team also said it was launching a new product called “Deep Search,” which would act as a “next generation search engine.” 

Grok 3 will be rolled out for premium X subscribers later in the day, and will also be accessible through a separate subscription for the model’s web and app versions, the xAI team said.

Speaking at The World Governments Summit in Dubai last week Musk had dubbed the model “scary smart,” with powerful reasoning capabilities, claiming it outperformed all other existing models in xAI’s internal tests. 

“This might be the last time that an AI is better than Grok,” Musk said at the time, adding that it was trained on “a lot of synthetic data,” and was capable of reflecting upon its mistakes to achieve logical consistency. 

The xAI team claimed that an early iteration of Grok 3 had been given better ratings than existing competitors on Chatbot Arena, a crowdsourced website that pits different AI models against each other in blind tests.

Toward the end of the product demo, Musk said that the company will keep improving the model.

“We should emphasize that this is kind of a beta, meaning that you should expect some imperfections at first, but we will improve it rapidly, almost every day,” he said, adding that the voice assistance for the model would be released at a later time.

Intense competition 

Musk, who has been quite vocal about the potential dangers of artificial intelligence, started xAI in 2023 entering the generative AI market that includes OpenAI’s ChatGPT. 

In September last year, OpenAI launched its most advanced model, the o1, which came with reasoning abilities and was able to solve relatively complex science, coding and math tasks. 

Musk, along with Sam Altman, helped create OpenAI as a nonprofit in 2015.

However, in recent years Musk and OpenAI’s leadership have been feuding. Musk recently led an investor group that submitted a proposal to buy the AI startup’s nonprofit parent for $97.4 billion — an offer OpenAI declined. 

Last month, Chinese start-up DeepSeek shocked the AI market when it released a technical paper that claimed one of its open source models was able to rival the performance of OpenAI’s o1 model despite using a cheaper, less energy-intensive process.

It accomplished the feat in the face of the U.S. restricting leading AI chipmaker Nvidia from selling its cutting-edge GPUs — used for training AI models — to China. 

XAI has a “Colossus supercomputer,” for training AI, which it said last year was utilizing a cluster of 100,000 advanced Nvidia GPUs for AI training. On Tuesday, the company revealed that it doubled the size of its GPU cluster for the training of Grok 3.

While many AI and tech experts have told CNBC that DeepSeek has intensified AI competition, showing what can be done with less advanced technology, others are more skeptical about its impact. 

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