amazon’s optimus robots

$16,000 a unit. Oh, dude, that's bad for

Tesla.

What? Amazon is developing software for

humanoid robots that could eventually

take the job of delivery workers. Now,

that's interesting because I I I believe

that you could have robo taxis

delivering packages. But the big

question was, who's going to get the

package out of the car? Do you just have

like a giant boot kicker that

automatically like boot kicks your

package onto your lawn, but then it's

going to get damaged? problem. So, you

actually need a robot to walk up your

stairs and put it, you know, behind the

pillar of your house so your neighbor

doesn't steal your Amazon package. In

doing so, Amazon paving the way to

automate a major part of its operation,

the delivery of parcels around the

world. I think Amazon is a low-key a

highly undervalued robotics plan. You

know, they use a lot of robotics in

their distribution centers. Uh obviously

they've got the AWS server

infrastructure that they could probably

train their proprietary models on

without the risk of intellectual

property being stolen because they could

essentially conceal uh the work that

they're doing for their vision

approaches on robotics or their

partnerships or whatever. It's kind of

interesting. Then as part of the

project, Amazon is putting the finishing

touches on a humanoid park. Okay, I want

to go to a humanoid park. This is like

one of those parkour parks. Parkour an

indoor obstacle course for one of the

company's San Francisco at one of the

companies San Francisco offices. I want

to visit where it will soon test such

robots. The move comes as numerous large

firms across the tech industry including

Nvidia, Google and Tesla develop

software or humanoid or or hardware for

humanoid robots which could have been

buoyed by recent advances in AI allowing

robots to better mimic human movements.

Totally fair. Mind you, I don't think

Amazon has the valuation premium for

robotics that Tesla does. Like Tesla, I

believe, sells for a valuation premium

because of hope around Optimus, whereas

Tesla, I don't think anybody Amazon

nobody really cares about. It's just

Tesla's getting the premium. Amazon. And

I think that's also in fairness though

to Tesla because Tesla is a

manufacturer. Amazon isn't manufacturing

these robots as far as we're aware.

Amazon has been the forefront of

robotics for years and has automated

some warehouse jobs by developing or

acquiring robots. That's true. They have

acquired robotics companies. Uh but it

has a large financial incentive to

automate the delivery of these partials

given it oversees hundreds of thousands

of people who handle such work. This is

fair because you have to think about

this too. This kind of artificial

intelligence work would be replacing

highly paid laborers in America which

obviously is bad for longerterm

employment in America. But people in

parcel delivery in America earn a lot of

money compared to, you know, somebody

maybe overseas working in customer

service or whatever, right? Uh so you

this is US highly expensive labor that

also has highly expensive uh workers

comp rates. Not only do you need

commercial vehicle insurance for the

vehicles, but you need the vehicles,

which you you know they're still going

to burn gas to get around, but it's the

person driving it that's the risk. They

get out, they trip on people's lawns,

they slide on people's sidewalks, then

they sue uh for, you know, uh whatever.

Uh medical claims are are a massive part

of the industry that gets replaced if

you don't have humans delivering

packages and tripping over people's lawn

toys and shovels and rakes and

pitchforks. Amazon is developing the AI

software that would power such robots,

this person said, and plans to use the

hardware from other firms and test. I

wonder if they could partner with Tesla.

I'll partner up with Tesla and use some

some Optimus robots. Uh Aristocs Market

says, "What about SIM for robotics?" I

love Symbotic. I actually think Symbotic

is a great play for broader autonom.

Uh and I don't think they sell for a

very high premium right now. They've

been stuck around 30 bucks for a while.

I feel like at least my memory. They

they just sort of bob around. Okay. In

the 20s is where they've been really

bobbing around. You can see that here.

But I think this is a decent play. It

seems like they bottom around 16 to 17

bucks. So, who knows? Maybe you'll have

a better chance to buy them soon,

especially since I mean, look at this

nasty downtrend they're on. Uh, and this

is a great play for warehouses, but the

trade war probably really hurts them

because Oh, this is disgusting. Look at

that. The trade war probably really

hurts them because you have uh so much

damage from

uh just the uncertainty around

manufacturing and what's going to come

of

are we going to see manufacturing growth

or are we just going to be happy

surviving right now?

So, uh

anyway, come back to that. I see your

super chat there. We'll come to that in

a sec. You know, sometimes people send

me super chats and I'm right in the

middle of an analysis on another deal or

company and then I get like a total left

field super chat and like I feel bad,

but you're asking me about Weeble while

I'm literally in the middle of a

robotics segment. You're just going to

have to give me a second. Anyway, Amazon

is developing AI software that powers

such robots. Okay. The initial obstacle

course they're developing is roughly the

size of a coffee shop. Oh, that's tiny.

Coffee shops are tiny. That's lame. That

plan mirrors the way self-driving oh car

developers are developing their le their

their vehicles by first testing them in

close courses before expanding to public

street testing. Right. Amazon mind you

was also working

zuks because they bought zuks and they

operate very well in Vegas. Uh and you

see them there every day in the and and

they're on the streets with whimos. So,

if you haven't seen those yet, keep an

eye out for Zuks ZOX.

Amazon hopes humanoid robots will be

able to hitch a ride in the back of

Riven vans. Oh, no way. Hey, shout out

to Riven. I wonder how Rivian's doing.

Have they gotten their profitability up?

Let's do a quick, since we're on sort of

this note of like Amazon and robotics,

let's take a quick look at the

financials over at Rivian. Let's see

what we got here. So, Riven,

uh, we've got a Q

4 Q1.

Looks like I got a press release on Q1

for May 6. That means I should have a 10

Q out on filings. So, here we go.

Automotive revenues did in actually

automotive and software together. Oh,

here we go. Okay. Wow. They're selling a

lot more software. Where did all this

software revenue come from? 318 in

software and services. I wonder if those

are like repair services or something.

But absent software and services, Rivian

actually shrunk in automotive revenues.

However, they were gross profitable of

course because automotive expenses are

going to be a lot greater. We had a lot

more scale here. I mean, you had

positive operating margin, pos gross

profit on the automotive segment for

their vehicles. No way. That's great for

Rivian still losing money handover fist

and burning cash like crazy. But they

spent $830 million manufacturing cars

that they sold for922.

That's bullish Rivian. Uh I haven't

actually seen

I mean we know they burn money again

like crazy, but I haven't seen much

action on their stock. In fact, you've

got this nasty downtrend uh that's been

going on forever, which makes sense

because they're essentially plundering

the stock to try to fund these business

operations. But that is interesting. And

Amazon does have a big investment in

Rivian that they've already made. So

Rivian's already benefited from that.

But anyway, this is why I think Amazon

is such an interesting consolidator. I

wouldn't actually be surprised if Amazon

potentially just ends up buying out

Rivian once they become pro more

profitable. I mean, what's the market

cap of Rivian right now? See, that's the

way to do it is let Rivian burn the

Rivian shareholders for now while

they're a 16 billion market cap. As soon

as they start becoming more profitable,

buy them out for $30 billion. Now you

have the manufacturing that Tesla has in

a profitable manner and you're making

your robotics. You could acquire

companies. Hell, you could even go

acquire Symbotic at the same time. You

know, symbotics trading for $16 billion

as well. So, you know, here you want

robotics manufacturers and vehicle

manufacturers, you could easily go have

your pick because look at the size of

Amazon. You know, Amazon right now is a

$2.29 trillion

company.

You would even notice their stock

dilution to absorb these companies.

Pretty incredible. Amazon's human

delivery workers are currently using

more than 20,000 Rivians. Wow. Uh and

the company has placed one Rivian van

inside its humanoid park to help with

the testing. Oh, that's awesome. How is

it the size of a coffee shop, though?

Like, I guess the van technically

doesn't have to move. You just park the

van inside the coffee shop facility and

then it has to get in and out and go

over stairs and toys or whatever. It's

honestly brilliant. Like, I think Jeff

Bezos is nearly

he might actually be to some regards

smarter than Elon. not like in every

regard, but he doesn't go out of the way

to say stupid like he focuses on

what can we do to make Amazon the best

company ever. And that's it seems to be

his focus, you know, as well as like

with Blue Origin and that, you know,

it's sort of very similar to the Elon

path. I do think Bezos is following

Elon. So, I think Elon is kind of like,

you know, he's he's burning down the

weeds and kind of paving the path and

Bezos is following him,

but in doing so, Bezos creates way fewer

enemies. So, Musk is unfortunately in

that awkward place where if you're the

first, you're usually getting all the

downside associated with it, whereas

Bezos can kind of navigate that. And I

think from a business point of view,

that's a smarter point of view. like in

terms of actual innovation, I you know,

I think Elon's going to be more creative

uh and more intelligent in that

direction. So, it's an idea. But anyway,

Amazon has said it will be adding more

Rivian delivery vans to its fleet,

reaching a 100,000 electric vehicles on

the road by 2030. It's unclear if the

companies will test the robots using

other delivery vehicles. Replacing

delivery workers entirely would require

automating the vehicles they drive.

Amazon has been developing self-driving

cars via Zuks, the company it acquired

in 2020. While Zuk says it's solely

focused on robo taxis, the company

mocked up a concept version of an

autonomous delivery vehicle when it was

pitching itself to potential buyers

ahead of the Amazon acquisition.

Really? I want to see where's the

mockup? They link the article. I mean, I

want to read the article. I want to see

the mockup. This was from Zuks. Tech

firms are still splurging on pet

projects. All right, whatever. All

right. Even if Amazon keeps human

delivery a human delivery driver behind

the wheel, the humanoid robot could

theoretically help deliver packages to

one building or house while the driver

delivers to another. Speeding up the

delivery time frames. Now, that's

interesting. You know, having sort of a

a robot assistant. Hey, you take that

side of the block. I'll take this side.

Amazon spokesperson didn't immediately

have a comment. It isn't clear how many

years Amazon thinks it will take for

such a robot to handle these duties, but

this summer, Amazon will test a variety

of humanoid robotics, including one from

Chinese-based Unit. $16,000

a unit. Oh, dude, that's bad for Tesla.

What? No, cuz Elon's targeting 25K

Unit Robotics. That's the problem, man.

These Chinese, they're so good at

manufacturing cheaply and they do good

stuff, too. Like the quality has been

going up. We always used to think of

them as like the cheap Barbie doll

manufacturers, but now they're just

creating incredible products. There it

is. Because I mean look at like you know

a company I'm going to show you two

companies that that I really like uh

and that I think you know are doing

fantastic work and these are companies

that you know about and they're Chinese

companies and they do phenomenal work.

Okay, the first is Segue Chinese

company. The scooters are mega popular

because you can basically buy your own

Lime scooter. Like Jack is dying for one

of these scooters. Maybe one day we'll

get one. I love the go-karts. I've been,

you know, I've been promoting these

go-karts for years, years.

These go-karts are freaking amazing. Uh

we use them almost every single day,

right? Chinese company. It's all made in

China. Here's another Chinese company,

DJI. These drones are phenomenal.

the cameras phenomenal.

They're, you know, basically copying the

GoPro style cameras. The Osmo Pockets,

pretty impressive. Uh, the stabilizers,

you don't really need that crap anymore

these days. Those are pretty impressive.

The Ronin's not worth it. The mic

products are incredible. You want to

know another Chinese company that's just

absolutely smoking it when it comes to

content creation? Insta 360.

The 360 cameras like the X5. really good

quality stuff. Use my affiliate link

medkevin.com/360.

Hook a brother up. Anyway, really good.

I use these in my aviation videos. You

know, I had um I haven't actually posted

this uh video yet, but I'll give you a

quick little sample uh because I think

it's funny and I'll you'll see Insta 360

clips from it. And my my point of

bringing this up is when it comes to

these humanoid robotics, it's not a

surprise to me that that Amazon is

willing to partner with a Chinese

company to do these robotics because

they could just pick the best robotics

company. They don't have to make a bet

on their own robots succeeding. They can

literally just utilize any robotics

manufacturer who can provide what they

need in a in a cheap manner. Right? So,

I'll show you this, but my Insta 360 is

right here. You could I've I think I've

since moved it, but this Insta 360 gives

me an interesting view. I think it's

actually in this shot. It's my outside

shot, and I could use it inside. I'm

still trying to find the best place for

it. Like, I got to move my little cable

here to get rid of the reflection on the

dashboard, the dashboard of the plane. I

got my passengers back here. But uh

listen to the plane yell at me. Okay,

you want to make fun of me? This is a

this was a really hard non-autopilot

flight over the mountains. You can

actually see the mountains right here,

like 800 ft below me, and I'm turning

over this ridge into the valley. And my

point is, I'm I'm basically using a

bunch of Chinese products to record

this. And this is a Brazilian aircraft,

the uh Embry Air. But listen to

and Betty get mad at me. She gets

pissed. Ready for this? She gets so

pissed out all the way. Oh yeah, it's so

out.

So, a little fast, but um glide path is

starting to come in here. Sink rate.

Pull up.

Go around. Wind shear ahead. Unstable

approach. Sink rate. All of them. You're

good. You're good. 500

down. We're stable. Runway 22 is all

yours.

Anyway, you can see my land. And then

let's get back to the Amazon piece.

Boom. Runways made. Power's out.

Insta 360 Chinese product. Great. Oh,

balls, dude. That was hard. Oh,

man. Dude, you did really. Uh, actually,

I think I give you Do I have another

angle here? Yeah. Here's my Insta 360. I

could rotate it around and you get our,

you know, fist bump. Good job, buddy.

Yeah, that was like a little a little

bit quick, but you made it work. Uh, for

the landing there. So, you know, this is

like the Chinese technology is so good

uh so good and and so using these

products like I don't I don't blame

Amazon at all for for you know getting

into these Chinese products. So, Unitry

G1 humanoid agent AI. Okay, here comes

Agentic AI.

Uh okay, interesting.

So flexible beyond ordinary people.

Look at that hip. These hips don't lie.

I mean, that's impressive, dude. I I

don't want Oh my gosh. That's actually

really impressive. Did you see that in

the rocks like that?

I mean, it probably took him 17,000

takes to get that shot.

This is pretty impressive.

Ivitation and reinforcement learning

driven,

right?

That face looks kind of cool, too. And

this is how China leaves America in the

dust, says Scott. Yeah, it really is. I

mean, these are like I understand

Optimus and we're all excited about

Optimus, but dude, the freaking Chinese,

man.

Run agent.

Not only can they do stuff great, but

they can do it cheap. Contact sales.

Look at this. They got the the more

expensive version. Contact sales. Price,

tax, and shipping excluded.

Eightmon warranty, baby. Eightmon

warranty.

Oh, well this sucks. Battery life 2

hours. But I mean, they're just getting

started, right?

And and I still think these these robots

need like anal ass chargers. That's

redundant where like when you go sit

back in the Amazon Rivian, you're

basically sitting on a charging stick.

Uh but it plans to try humanoid robotics

from other providers, too. Okay. By

using a variety of robot forms, Amazon

aims to collect diverse data that could

be used to quickly train new humanoids.

Though transferring data from one robot

body to another can't easily be done

today. That's fair. You kind of have to

train each of them individually. Like

it's kind of why I don't think we've

seen other manufacturers adopt Teslas

just yet. So like other kinds of AI,

training a robot in specific environment

like humanoid park runs the risk that

robots will master the course by

memorizing every twist and turn but

malfunction when it comes to actual

work. Yeah, that's true too. This this

concern that like hey if you just

memorize it, you'll never actually get

good at doing a real job in a dynamic

environment. That's true. That's why

those edge case scenarios are so

important for Tesla. So but this is

really important. Amazon has worked with

humanoids before. They started testing

Digi Bots. Humanoid robotic developers

mimicking human form is the easiest way

to put robots to work in jobs humans

perform. This is why I think in

factories this will be most important.

But they're coming. The robots are

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