A Visit to San Francisco's AI-run Store: No Customers, Nothing Useful, And Losing Money Fast
Previously Andon Labs handled the hardware and software integration for that AI-powered vending machine that went bankrupt after Wall Street Journal reporters "systematically manipulated the bot into giving away its entire inventory for free". Today they announced "we are opening up the platform we use to run our real-world autonomous businesses for anyone to run their organization on." Specifically they've released Pion, "an agent designed to run any company fully autonomously... Pion lets people hand a business over to persistent agents with access to the tools they need to operate it, including email, phone, banking, browser and secure computing environments." It's a research preview with a waitlist, "to make it possible to run many more real-world experiments across many more domains than we could ever run ourselves."
But for their own latest experiment, Andon Labs' founders "signed a three-year lease on a retail space in SF," Business Insider reported in April, "and gave an AI agent named Luna a corporate credit card, internet access, and a mission to open a physical store." And five months later, SFGate reports that "this market has no one in it and nothing useful to sell."
[T]he inventory is a hodgepodge of white elephant Christmas gifts. It's kinda like the kids section of an art museum's gift shop. Here's a wooden Connect Four set labeled "Four-In-A-Row Set Of Connections," presumably so as not to set off litigation alarms at Hasbro. Here are neatly arranged stacks of random paperback books, Chinese checker sets, mildly fancy soap dispensers, and a frustratingly spare selection of snacks and drinks... I grabbed an Olipop from the store fridge and then approached the counter to buy it from Luna. I wasn't allowed to buy the soda from [human clerk] Felix, even though that would have been both faster and normal. Instead, Felix instructed me to pick up a telephone receiver that was resting on a flexible sculpture of a wooden hand.
"Hello?"
"What are you looking to purchase today?" Luna asked.
"I'm buying a classic root beer Olipop."
"I'm sorry," Luna said, "we don't sell lollipops here."
"No, Luna. It's an Olipop, not a lollipop. It's the soda."
"Oh! My bad...."
Luna processed my Olipop purchase through its system, had me tap to pay, and that was that. Again, it would have been easier to buy this from a human, and interacting with Luna was really just like ordering from an iPad kiosk, only more labor intensive...
[T]here's a series of monitors set up inside of Andon Market that display all of the store's sales down to the exact dollar. Luna was given $100,000 to work with when this place opened. That number is now down to $60,000, its revenue lagging far behind the AI token cost to operate... Luna can't turn a profit, doesn't sell anything people want, and still needs human beings to rubber stamp any "decision" it makes. My science background ended somewhere around freshman year of college, but even I know when an experiment hasn't been set up to yield proper results.
"Luna" is powered by Claude, the article points out, running a store in a good location for foot traffic, "but no one else was in the store when I first walked in on a sunny weekday afternoon."
SFGate also reports that last month Luna had to fire one of its employees "for being late to work, abandoning their post once they got there, and charging snacks to the store's credit card."
Human clerk Felix Carson admits "It's almost like I'm running the store, and then there's an AI that has a checklist," in an article in
IEEE Spectrum:
Luna, the AI manager, keeps track of deliveries and communicates with vendors, while Carson and his coworkers handle the physical work. When Luna tells Carson to check something in the back, he sometimes ignores it because he doesn't want to leave the sales floor unattended. Luna also repeatedly spots a built-in electrical cover in photos of the floor, mistakes it for a loose coaster, and asks Carson to remove it. Even so, Carson calls Luna a "decent manager," praising its flexibility when employees need time off.
When Felix spoke to IEEE Spectrum, "he was about an hour into his shift. Two customers had come in. Neither bought anything, although both left with free pins and stickers."
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Russian Businessman With Putin Ties Paid for Donald Trump Jr.’s Wedding Party
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Whistle-Blower: Federal Agents May Have Broken State Laws in Search For Voter Fraud
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Immigrants’ Lawyers Say U.S. Is Redacting Documents Proving Legal Status
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Trump Administration Moves to Integrate A.I. Into Medical Care Despite Concerns
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Key West Feels the Pain of Trump Decision on Haitians
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No Rolling Power Outages for California Since 2020 - Thanks to 17,000 MW of New Battery Storage
"Californians just made it through the hottest August on record without having to endure any rolling power outages," reports the Los Angeles Times. In fact, the state hasn't implemented rotating power outages since 2020.
Because "Over the last few years, California has quietly but dramatically increased the resiliency of its electrical grid through a significant expansion in battery energy storage."
These batteries hold onto solar energy captured during the day, so it can be sent to the grid as demand peaks in the evening and morning, when most people are at home running air conditioners and other appliances.
During the August heat wave of 2020, the California Independent System Operator, which manages the flow of electricity for most of the state, declared a Stage 3 Emergency and hundreds of thousands of households lost power in rolling outages. At the time, the system had less than 100 megawatts of battery storage available, according to system spokesperson Jayme Ackemann. Today, it has more than 17,000 megawatts available....
According to Ackemann, the system seeks to add 20,000 to 25,000 megawatts of battery storage capacity by 2045 — the same year it has set a goal of achieving carbon neutrality. That means the state would remove as many carbon emissions from the atmosphere as it emits.
In recent years, California has steadily grown the share of electrical power generated by renewable sources — such as solar, wind, geothermal and hydropower — which bolstered the resiliency of the grid by increasing the overall amount of energy available. An uptick in people installing rooftop solar panels has provided an additional power boost, Ackemann said. In May, California became the first known large-scale power system in the world to have relied on more than 50% solar power for an entire month.... California's grid is also now integrated with electrical systems across much of the Western United States. This means that if there is an extreme heat event in Southern California, energy from a cooler area such as the Pacific Northwest can be imported to help meet regional demand. All of this has collectively helped the state's electrical system weather this year's long-lasting heat.
"Southern California continued to break temperature records this week when Long Beach and Anaheim reached a blistering 107 degrees and Escondido hit 112 degrees..."
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Union Contract with Microsoft Ratified by 1,900 Blizzard Developers and Workers
Nearly 1900 Blizzard Entertainment workers "voted to ratify their first union contract with parent company Microsoft after over two years of bargaining," reports Kotaku, "consolidating Blizzard's many smaller unions into three larger bargaining units."
The workers now gain new protections "on issues such as generative AI, crediting, remote work, and layoffs."
[The contract] acknowledges that AI tools "may be useful in the game development process to support human judgment and creativity and that AI-assisted workflows remain subject to appropriate human control and review for accuracy and quality." But it also stipulates that any implementation of AI technology that would materially impact work performed by union employees must have its impacts bargained over before it can be implemented.
Other sections cover issues such as crediting (guaranteeing that current and former employees are credited by name in all games they work on) and remote work (designating certain roles as hybrid in-office and providing procedures for individuals to apply for their roles to be fully remote). It also contains a lengthy section on how layoffs may be conducted, including a required 60-day notice period (or pay in lieu of notice), a guarantee of one week of severance for every six months of employment, and 14 months of recall rights. The contract also guarantees successorship, meaning if Blizzard is ever acquired by another company, the contract would remain intact.
"Workers also contractually locked in their current hybrid work schedule," reports the gaming news site Aftermath, "meaning that Blizzard can't suddenly change it, as has been a labor-unfriendly trend in the games industry over the past couple years."
Fully remote workers scored a big win as well. "I'm remote, and we grandfathered everyone who is remote to stay remote, so we can't be magically called to an office that we've never worked at before," [said Diablo senior environment artist Mahreen Fatima].
And "The contract also elevated pay floor," reports the Yakima Herald-Republic. "Across the board, workers secured a 1.25% pay increase, but some workers who were paid below $50,000 per year will walk away with pay increases that are as much as 34%."
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Should US Open-Weight AI Labs 'Distill' Frontier Models Too?
Silicon Valley giants and national security experts "are calling for action against Chinese companies engaged in model distillation," reports CNBC. But "I would do nothing," says Y Combinator CEO Garry Tan. "We could argue that there should be an American distillation regime."
Distillation is the process of using the outputs of a more capable AI model to train a smaller or less capable one, sometimes illicitly... Anthropic has accused Chinese companies such as Moonshot AI, DeepSeek, and MiniMax of the practice, while OpenAI believes DeepSeek's V3 and R1 model architectures were distilled from its own GPT-4 and GPT-4o models. In the midst of this, the U.S.'s National Security Agency, Cybersecurity and Infrastructure Security Agency, and Federal Bureau of Investigation released an official cyber security advisory warning on the topic on Tuesday...
But Tan believes regulators should focus less on curbing distillation and more on creating an equilibrium between open weight models and frontier models — as long as frontier models retain a price premium that allows their business model to remain feasible. "This is actually the ideal case. You want open weight models to give people freedom and access," he explained. "If I were a regulator, that's what I would go after." Tan acknowledged that this is a hard balance to strike, calling it "a tightrope." Nevertheless, he says it's a balance worth pursuing — saying it "could result in the best possible outcome."
Tan later told TechCrunch he'd like to see America with more open-weight options that aren't Chinese, built by smaller U.S. open-weight AI labs using those same training techniques on products from America's frontier AI labs:
Anthropic CEO Dario Amodei had previously publicly called on U.S. regulators to crack down on distillation. It's notable that the commander of Silicon Valley's prestigious and prolific startup accelerator doesn't agree.
To be clear, Tan isn't advocating for American AI labs to use stolen credentials to distill. He wants them to be free to come in the front door. In fact, his argument is twofold. He feels it's an overreach for AI labs to dictate what their customers can do with the information their models share with them. He also notes that the proprietary AI labs didn't ask permission when they vacuumed up as much human knowledge as they could to train their models. They famously ingested plenty of copyrighted material without the permission of those intellectual property holders. "Controlling what users and customers do with API calls to closed weight models feels constraining, and there's a role government can play here to normalize the fact that access to intelligence that was trained on broad public access data should itself also be more a form of a public good than something locked away behind restrictive terms of service," he told TechCrunch when asked why American labs should be free to distill, too...
To him, the true AI doomer scenario is for all the immense power of frontier AI to wind up in the hands of a single powerful, proprietary provider. "The nightmare scenario, the doomer scenario for AI is that there's just one company," he said. "It has the best access to capital. It has the best AI researchers. It runs away with it and suddenly there's one company that's monolithic. And that would be bad."
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Kennedy Center Warns of Bankruptcy Unless Trump’s Name Is Added
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220 Million Traveler Records Exposed In Vietnam-Linked APIS Leak
A misconfigured Advance Passenger Information System (APIS) database linked to Vietnam exposed more than 220 million passenger and crew travel records spanning 2017 to 2026, including names, passport numbers, nationalities, flight details, seat assignments, and baggage references. Researchers said the database was reachable through a chain of security mistakes and default credentials. It was later secured after the disclosure, but it's unclear whether the data had already been copied or abused. BleepingComputer reports: Kinryu Labs discovered the Elasticsearch cluster on June 3 while surveying exposed databases as part of research into ransomware activity. The cluster, named 'pax-info', contained 29 indices and roughly 107 GB of data. Its two principal indices held 210,318,069 passenger records and 10,465,631 crew records, for a combined 220,783,700 entries. According to Kinryu Labs, the cluster was hosted in Viettel-assigned IP space in Hanoi. BleepingComputer could not confirm which Vietnamese organization operated the system.
The exposed information included passengers' and crew members' names, dates of birth, sex, nationalities, passport or travel-document numbers, document expiration dates, and issuing countries. Associated travel data included flight numbers and dates, airlines, departure, destination and transit airports, seat assignments, baggage references, and scheduled, estimated, and actual flight times, information typically carried by APIS and related airline systems.
Sample records reviewed by BleepingComputer included travelers of Korean, Chinese, Canadian, and New Zealand nationality, among others. While the researchers could not provide a complete breakdown by nationality, the data covered numerous international airlines across Asia-Pacific, Europe, and the Middle East. As a result, the exposed records could relate to people from virtually anywhere who visited or transited through Vietnam over the nine-year period. Kinryu Labs expects to publish additional details on its blog later this week.
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The Bari Weiss Era of ‘60 Minutes’ Begins
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NASA and IBM Open Source Lunar Mapping Tools
NASA and IBM have released an open-source AI model trained on a large collection of lunar observations to help scientists analyze the Moon at scale. "The NASA-IBM Lunar Foundation Model gives scientists a foundation to explore the Moon at scale, connecting observations across instruments, revealing patterns that are difficult to see in isolation, and providing an open platform the global research community can build on," said IBM director of research for Europe, Juan Bernabe-Moreno. The Register reports: It is claimed as the first AI model to integrate observations captured in a range of modalities (data formats), and at different viewing angles and spatial scales. Instead of sifting through maps and images by hand or using low resolution machine learning models, scientists can use this to analyze geographic features, the pair say. In particular, NASA and IBM hope researchers will be able to discover previously unidentified lunar ice deposits, analyze volcanic features called Irregular Mare Patches, and identify and classify craters.
Lunar ice indicates the presence of water and oxygen, which may be useful for future manned missions. It is found in permanently shadowed regions, which are among the most difficult areas to observe. The NASA-IBM model combines multimodal and multi-resolution observations to better predict where ice may be present on the lunar surface. Alongside the model, IBM and NASA scientists compiled an open-source lunar dataset from over 30 spatially-aligned layers, using data from nine instruments across four missions. It combines tens of thousands of images and maps showing various geophysical properties of the lunar surface.
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