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Cake day: December 19th, 2024

cross-posted from: https://lemmy.dbzer0.com/post/74144681

A 404 Media investigation was able to reveal Amazon’s book buying operation, which hasn’t been previously reported, by placing a tracking device in a rare book we suspected would be acquired by an AI company for training data, and following it around the country to its final destination. That final destination was an Amazon warehouse in Las Vegas, Nevada. Amazon employees who work at this location say all they do is receive massive shipments of printed books which they then cut the bindings off in order to scan the books more quickly. The printed book is destroyed in the process. The logo of the Amazon team that works at this warehouse, called VGT3, is a dinosaur, brandishing its teeth and with a book in its hands. “Amazon purchases books through commercial channels to help develop and improve the products and services our customers use,” an Amazon spokesperson told me in a statement. The world’s AI companies are constantly looking for, and spending extreme resources to locate, more material to train their AI models. With books, that sometimes means destroying them in the process, something that large parts of the public have spoken up against, and which we can now confirm Amazon is doing. In July, I published a story about booksellers who reported a historical spike in sales starting in the past year. They suspected this spike in sales was due to AI companies acquiring any books they can in search of new training data. Printed books are valuable as training data because a lot of the text they contain is not readily available on the internet, which AI companies have already scraped. The data is also conveniently organized and, if the book was printed before 2022, is guaranteed to be free of AI-generated text, which can make any AI model that is trained on it worse via a recursive process called “model collapse.” 📖 Do you know work at a facility where you scan books? I would love to hear from you. Using a non-work device, you can message me securely on Signal at @emanuel.404. Otherwise, send me an email at emanuel@404media.co. These booksellers suspected AI companies were behind these large bulk purchases because of the high number of books they were buying, the seemingly random choice of books, and the fact that these buyers, unlike libraries and universities, did not seem price sensitive at all. But booksellers couldn’t say for certain who was behind the large purchases because the marketplaces where they sell their books keep the buyers anonymous. When an order comes in, a bookseller ships the sold books to a warehouse operated by the marketplaces, where books are sorted and then sent to the buyer. In July, one bookseller told me they received a very large order of around 1,000 books on Biblio, one of these marketplaces. The seller agreed to put an Apple AirTag provided by 404 Media in one of the books included in this order so we could see where the book was going. And by extension, which company, AI or otherwise, was behind this massive order. 404 Media granted the bookseller anonymity because they worried sharing this information would harm their business. Biblio did not respond to a request for comment.

cross-posted from: https://lemmy.dbzer0.com/post/74091518

CME Group, the world’s leading derivatives marketplace, and Silicon Data, the industry leader in GPU market intelligence and benchmarking backed by global trading firm DRW, today announced plans to launch two Compute futures contracts on October 5, 2026, pending regulatory review.

These innovative new trading tools will bring much-needed hedging and investment vehicles to businesses looking to manage the cost of compute, the processing power and hardware infrastructure that machines need to train and run AI models. Both Silicon Data H100 Rental Index Futures and Silicon Data B200 Rental Index Futures will track indexes measuring hourly rental GPU costs published by Silicon Data. Each contract will represent a month’s worth of rent for the Nvidia H100, the chip central to today’s AI ecosystem, and the next-generation Nvidia Blackwell B200, respectively.

“Compute has become the currency of the AI age, and this innovative market will bring transparency to the current and future costs that AI builders and hyperscalers need to hedge as they grow,” said Pete Keavey, Global Head of Energy and Environmental Products at CME Group. “Just as oil fueled the 20th century economy and evolved from spot trading into a global derivatives market, our futures contracts will now turn compute into a standardized, tradable commodity that will provide global businesses with a reliable, regulated venue to manage price risk .”

“For years, two companies buying the exact same GPU capacity could pay wildly different prices with no way to know who got the better deal. They will now have a benchmark to check that against,” said Carmen Li, Chief Executive Officer of Silicon Data. “Compute futures give the market something it’s never had: a public, tradable reference price for the resource every AI system runs on. Silicon Data’s benchmarks make that price real; CME makes it tradable. Together, that turns compute from something enterprises negotiate blindly into a market they can actually plan around.”

Explosive demand has driven sharp swings in compute prices, with volatility exposing a gap in the risk-management toolkit for companies building the AI infrastructure. CME Group and Silicon Data’s Compute futures close that gap, bringing transparency to the market and allowing companies, including AI developers and hyperscalers, to lock in their costs. They will also provide a window into future AI spending.