Good morning. Jason here.
In my decade-plus of reporting on Amazon, I’ve interviewed hundreds of small and midsized business owners who make a living selling through the e-commerce giant’s storefronts. Even the most level-headed among them can have a love-hate relationship with the tech giant. Many grumble about the (increasing) size of the revenue cut Amazon takes; others frequently cite Amazon’s sometimes faulty automated software systems, which can disrupt, or even disable, a merchant’s storefront, basically overnight.
So Amazon’s move this week to roll out even more automated systems, in a bid to bring the wonders of AI and agentic AI to its army of merchants, is going to be worth paying close attention to.
If successful, Amazon could widen the already substantial gap between itself and other online marketplaces as the go-to selling destination online. But if things go awry, it would be interesting to watch whether it creates an opening for competitors to recruit some more Amazon-focused sellers. Of course, where most consumers shop, sellers often follow.
More on this, as well as the latest on Nvidia’s trade war headache, below.
— Jason Del Rey
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China is essentially banning a new Nvidia AI chip
Earlier this week, we told you about China's preliminary ruling that Nvidia had violated the country’s antitrust laws. Now, more China-based woes for Jensen Huang & Co.
China's top cybersecurity regulator urged Chinese tech companies this week to avoid purchasing one of Nvidia's newest AI chips designed specifically for the Chinese market, as the U.S.-China trade war continues to embroil the world's most valuable company.
"The guidance from the Cyberspace Administration of China effectively blacklists Nvidia’s RTX Pro 6000D chip, which is designed for industrial artificial-intelligence applications," people familiar with the move told The Wall Street Journal.
As China and the U.S. Each try to create leverage in the trade war, Nvidia finds itself once again caught in the middle. In London, Huang told reporters that he was disappointed and that his company can only do business with markets "if a country wants us." But he acknowledged the obvious larger stakes at play between the two economic powerhouses.
As for Nvidia's stock? It still stands near all-time highs with a market cap comfortably above the $4 trillion mark even after dropping around 2.6% on Wednesday.—Jason Del Rey
Amazon's army of independent sellers get a new AI agent
Amazon introduced new AI tools to help the millions of independent merchants who sell on its platform.
The e-commerce giant had launched an AI selling assistant last year, but said on Wednesday that a new updated version of the technology "goes beyond answering queries and is capable of coordinating inventory orders and business growth plans, as well as implementing fixes for account issues, potentially helping merchants avoid costly suspensions."
Amazon depends on these sellers in myriad ways. They account for more than 60% of all product sales on Amazon and the fees they pay the company generated more than $160 billion in revenue over the last 12 months—and that's not even counting the advertising many sellers pay Amazon for.
But many sellers a love/hate relationship with the tech giant because of the power it wields over them, including the risk that their livelihoods could essentially evaporate overnight if Amazon's automated systems mistakenly flag their accounts or products for policy violations.
The new seller agent have the potential to bring new levels of success for the best and brightest of Amazon's third-party sellers. But if history is any indicator—the automation could have downsides that create more headaches for merchants.—JDR
Tesla to redesign door handles amid 'panic' scenario scrutiny
Tesla's longtime designer Franz von Holzhausen told Bloomberg on Wednesday that the electric automaker is redesigning its door lock systems in an attempt "to make the handles more intuitive for occupants in 'a panic situation,' the news service reported.
"The idea of combining the electronic [handle] and the manual one together into one button, I think, makes a lot of sense," he said.
While von Holzhausen didn't comment on the impetus for the redesign, the company has come under fire following an earlier Bloomberg investigation documenting cases where Tesla occupants —or first responders—have struggled to exit or enter the vehicle after a loss of power.
"[W]hereas Teslas fare well in government-administered crash tests, certain hallmarks of its vehicles—flush door handles, electrical power, mechanical releases—are flummoxing occupants and first responders," the report said. "This can turn moments after crashes into deadly races against time."
The National Highway Traffic Safety Administration has also opened an investigation related to car doors, having received 140 related consumer complaints over the past seven years.—JDR
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—StubHub's own ticket sells low following IPO. The stock slid 6% on the $8 billion online ticket seller's first day of trading.
—YouTube's assault on the living room TV (and much more). An interview with CEO Neal Mohan.
—The college degree debate: valuable or scam? A tech CEO's kid is asking what many Gen Z students are thinking.
