Amazon’s Bold Leap Towards AI-Driven Warehouse Automation: The Covariant Acquisition Story

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Amazon May Be on the Verge of a New Robotics Breakthrough

Back in 2012, Amazon discreetly purchased a robotics company named Kiva Systems. This acquisition significantly enhanced the productivity of its online retail activities and initiated a broader transformation in the automation of warehouse processes.

Last week, the online retail behemoth revealed a significant new partnership, opting to employ the creators of Covariant, a startup exploring methods to increase the automation of sorting and managing diverse physical items through AI.

Covariant's journey to market AI-powered industrial robots might have been hindered by steep expenses and intense rivalry; however, the agreement that also includes Amazon's licensing of Covariant’s technology and information, has the potential to ignite a new transformation in ecommerce. This shift could be difficult for rivals to emulate, considering Amazon's extensive operational capabilities and wealth of data.

This agreement serves as a case study of a major technology corporation securing vital skills and knowledge from an artificial intelligence startup without fully purchasing the startup itself. Amazon reached a comparable arrangement with Adept in June. Earlier, in March, Microsoft finalized an agreement with Inflection, and in August, Google brought on board the creators of Character AI.

During the early 2000s, Kiva introduced an innovative method for transporting goods within warehouses. This method involved compact robots that could pick up and transport shelving units filled with products directly to human workers, eliminating the need for those workers to trek long distances daily to locate various items. The robots utilized by Kiva resembled those found in manufacturing environments, and the company implemented sophisticated algorithms to manage the simultaneous operation of numerous robots within the same facility.

By 2023, Amazon's fleet of mobile robots expanded from approximately 10,000 in 2013 to 750,000, enabling the company to distribute millions of products more swiftly and affordably than its competitors, thanks to its vast operational scale.

In a report by WIRED, it was disclosed that Amazon has been implementing advanced robotic technologies that utilize machine learning for tasks such as identifying, handling, and organizing boxes. Amazon is using its vast operations to benefit its systems, as the influx of items through its warehouses provides valuable data that enhances the efficiency of various algorithms. This initiative has resulted in increased automation of tasks that were once performed manually by employees in certain distribution hubs.

Despite advancements in automation, the task of physically handling items continues to pose a significant challenge. This is due to the need for flexibility to manage factors such as grip strength and potential for items to slip. Robots, especially in a setting like Amazon's extensive warehouse, are bound to encounter a variety of items, some of which may be peculiar or difficult to manipulate.

Over the last few years, Covariant has been dedicated to crafting artificial intelligence algorithms that possess a broader capacity to manage various items with greater dependability. Established in 2020 by Pieter Abbeel, a distinguished professor at UC Berkeley known for his innovative contributions to integrating machine learning with robotics, the company also includes among its founders several of his students. Among these are Peter Chen, who took on the role of CEO at Covariant, and Rocky Duan, who serves as the company’s CTO. A recent agreement will result in them, as well as a number of the startup's research scientists, becoming part of Amazon.

"Alexandra Miller, a representative from Amazon, informed WIRED that the company plans to implement Covariant's technology within various robotic handling systems throughout their distribution system. The corporation chose not to disclose the monetary aspects of the transaction."

Abbeel initially joined OpenAI and his venture has been influenced by the achievements of ChatGPT. In March, Covariant showcased a conversation interface for its robot, announcing the creation of a base model for robotic gripping. This model is structured to improve with an increase in data input. Chen, the Chief Executive, pointed out that the primary hurdle would be acquiring sufficient data to enhance the robot's functionalities. Considering the immense inventory in Amazon's storage facilities and the magnitude of its business activities, it's challenging to identify another enterprise that could offer a comparable amount of data.

Yaro Tenzer, who helped start and now leads RightHand Robotics, a company in Boston known for its robotic picking technology, points out that startups such as Covariant face difficulties in providing affordable solutions due to the complexities of AI development, the need for project-specific customization, and the extended duration of sales processes in the realm of ecommerce fulfillment.

"Creating a hardware and software enterprise that validates the expansion through venture capital is highly difficult," Tenzer remarks. Nevertheless, he theorizes that Amazon could have identified a chance to establish a specialized team focused on AI-driven selection, though he thinks it would probably require several years to become profitable.

It remains uncertain if the agreement with Covariant will be as transformative as the one with Kiva. However, during a visit to one of Amazon's highly automated warehouses last year by WIRED, it was observed that human intervention was still essential for tasks such as picking and packing, along with assisting robots that encountered issues. The partnership between Amazon and Covariant could potentially lead to a reduction in the workforce required for managing its merchandise over the next ten years.

WIRED has partnered with Amply to launch WIRED Hired, a specialized job platform tailored for WIRED's audience. Businesses interested in promoting their vacancies can utilize WIRED Hired to list their job openings, allowing individuals to explore and submit applications for a wide array of job prospects. It's important to note that Amply does not have any involvement with this story or any of the editorial material.

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