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XAmazon Is Building a Machine Learning Research Center with USC
Samson Amore is a reporter for dot.LA. He previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Samson is also a proud member of the Transgender Journalists Association. Send tips or pitches to samsonamore@dot.la and find him on Twitter at @Samsonamore. Pronouns: he/him

Alexa-maker Amazon is creating a machine learning and artificial intelligence research lab at USC as the retail giant grapples with growing privacy concerns around its products. The Center for Secure and Trusted Machine Learning, part of USC's Viterbi School of Engineering, will support research that looks at new ways to secure and preserve privacy in machine learning and can be applied at scale "to support billions of users."
Amazon's artificial intelligence systems extend beyond its smart home devices; the company automates much of its processes using machine learning; including product recommendation, the Amazon Echo and the Amazon Go store (a brick and mortar location that runs without cashiers). Amazon also recently launched Halo, a wearable fitness tracker comparable to the Fitbit that also connects with Alexa and the rest of its smart devices.
A.I. and machine learning underpin almost all Amazon's products, and the technology is what powers any smart home device. The "internet of things" concept -- the idea that different individual computers can communicate with one another on a universal network -- is also powered by A.I. Nearly all big tech companies use A.I.
"A.I. fuels just about everything we do at Amazon, and we challenge ourselves every day to find ways to use this technology to benefit customers," a company spokesperson told dot.LA. "A.I. is a key part of our culture because we are customer obsessed, and these technologies have developed as great tools for developing and improving customer experiences."
Amazon wouldn't comment on if it will use this research to develop its A.I.-enabled products, like the Alexa smart device.
Though it has relationships with other colleges, the program with USC is Amazon's first machine learning-focused fellowship project with a campus.
The center's goal is to make A.I. and machine learning technologies more secure and trusted by the public. It will be directed by Salman Avestimehr, professor of computer and electrical engineering at USC, who will also oversee related fellowships and the overall project.
Avestimehr said he thinks there are many companies besides Amazon that could benefit from the center's research.
"Amazon is interested in this, and many others. [Machine learning] is a hot topic, and it's on everybody's mind," Avestimehr said. "Privacy, security and trust resonates with everybody."
Salman Avestimehr is a professor of computer and electrical engineering at USC.
Privacy, according to Avestimehr, refers to keeping individual users' data safe, while security is related to securing the open-source systems from threats. "Since everybody can be a part of this ecosystem of machine learning, therefore it is also open to any adversary behavior," he added.
There's also the challenge big tech companies face in getting their customers to fully trust their automated systems (and keep using their devices).
Google is another tech giant that's trying to figure out how to approach and market A.I., which it uses in many facets of its business including its Google Home devices, which compete with Amazon's Alexa. Lead researchers and engineers at Google have quit over concerns the company and its CEO Sundar Pichai aren't prioritizing diversity in developing A.I. -- an issue they've voiced since 2015. Google's co-head of ethical A.I. Margaret Mitchell is currently under investigation for allegedly sharing classified Google documents with outside sources.
"If this is something like coming up with this algorithm to run your home, how would you trust that? How do you trust this algorithm that is learning by itself?," Avestimehr said.
Amazon had similar issues. Cybersecurity researchers including those at Check Point have uncovered privacy concerns with the Alexa, including the ability to hack into the device, steal personal information and change which "skills" Alexa can perform. "Successful exploitation would have required just one click," Check Point wrote in its report.
At CES last year, Amazon said it sold at least 200 million Alexa devices to date, and that its customers use the voice assistant prompts to control their smart homes a combined "hundreds of millions of times" each week.
"At Amazon, privacy and security are foundational," an Amazon spokesperson said. "Our highest priorities are keeping customers' information safe, providing customers with transparency and control, and making privacy controls incredibly easy to use and understand."
The technology and research produced by the lab could lead to a wider understanding of how A.I. and machine learning works. Avestimehr said he hopes it'll also convince the public to engage with more complex A.I. systems that could actually be dangerous, like autonomous vehicles.
"They're not making big decisions yet," Avestimehr said of most current A.I. systems.
Under Avestimehr's direction, the center will accept qualified USC PhD candidates into its Amazon Machine Learning Fellows program, where they will gain access to funded research projects, annual fellowships, public research symposiums and annual workshops. The program will also reach out to younger engineers; there are plans to train and eventually recruit high school and university students.
"Related to our university, it's good at attracting talent, educating talent and these fellowship resources will be very useful to drawing talented students, educating them and [also] recognizing the greatest students we have at USC," Avestimehr said.
Amazon and USC have partnered before on projects. The ecommerce giant said through a spokesperson that it chose to work with USC to develop a machine learning center partly because it deepens Amazon's access to the graduate talent pool.
"We are delighted to bring together top talent at Amazon and USC in a joint mission to drive ground-breaking advances in privacy and security preserving machine learning; advances that enable us to continue to safely and securely deliver experiences," Amazon's Alexa AI Vice President — and former USC vice dean of engineering — Prem Natarajan said in a statement.
Though it's headquartered in Seattle, Amazon has a sizable operation in Los Angeles. The company said it continues to hire at its hub in L.A., and added, "there are currently more than 500 tech and corporate roles available." Right now, Amazon said it employs thousands in L.A. County.
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Samson Amore is a reporter for dot.LA. He previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Samson is also a proud member of the Transgender Journalists Association. Send tips or pitches to samsonamore@dot.la and find him on Twitter at @Samsonamore. Pronouns: he/him
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Faraday Future Reveals Only 401 Pre-Orders For Its First Electric Car
David Shultz is a freelance writer who lives in Santa Barbara, California. His writing has appeared in The Atlantic, Outside and Nautilus, among other publications.
Electric vehicle hopeful Faraday Future has had no shortage of drama—from alleged securities law violations to boardroom shake-ups—on its long and circuitous path to actually producing a car. And though the Gardena-based company looked to have turned a corner by recently announcing plans to launch its first vehicle later this year, Faraday’s quarterly earnings report this week revealed that demand for that car has underwhelmed—to say the least.
Among the business updates and organizational changes disclosed in its first-quarter earnings release on Monday, the company tucked in one startling number: 401. That’s the number of paid pre-orders that Faraday said it had received for its first production vehicle, the FF 91, as of March 31.
The paltry number is especially interesting given the context of the automaker’s rocky history. Earlier this year, the publicly traded company found itself in hot water with the Securities and Exchange Commission, which is now investigating allegedly inaccurate and misleading statements made by Faraday to investors. Those statements, according to an internal review by the company, include misrepresenting how many pre-orders it had received for the FF 91: Originally, Faraday reported more than 14,000 reservations on its books, but it later emerged that an overwhelming bulk of those pre-orders were unpaid—with only a few hundred actual, paid deposits on the vehicles. (What’s more, nearly 80% of those pre-orders were allegedly from a single, undisclosed company that may have been an affiliate of Faraday’s, according to a blistering report by short-selling firm J Capital.)
Faraday’s earnings report also highlighted first-quarter developments including leadership moves, production partnerships and its unveiling of the first production-intent FF 91. The company noted that it had received a dealer and distributor license from the state of California that should allow Faraday to sell vehicles online anywhere in the U.S. It also signed a lease for a showroom in Beverly Hills, and is currently on the search for a second such location in the U.S. Additionally, Faraday Future’s second car, the FF 81, will be produced in South Korea in partnership with auto manufacturer Myoung Shin, with production slated to begin in 2024.
In terms of financials, Faraday reported an operating loss of approximately $149 million in the first quarter—up from a loss of $19 million in the same period last year. The company has $706 million in total assets on its balance sheet, including $276 million in cash. Faraday’s stock closed Wednesday’s trading at $3 per share—down roughly 50% since the start of this year.
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David Shultz is a freelance writer who lives in Santa Barbara, California. His writing has appeared in The Atlantic, Outside and Nautilus, among other publications.
Meet CropSafe, the Agtech Startup Helping Farmers Monitor Their Fields
David Shultz is a freelance writer who lives in Santa Barbara, California. His writing has appeared in The Atlantic, Outside and Nautilus, among other publications.
This January, John McElhone moved to Santa Monica from, as he described it, “a tiny farm in the absolute middle of nowhere” in his native Northern Ireland, with the goal of growing the crop-monitoring tech startup he founded.
It looks like McElhone’s big move is beginning to pay off: His company, CropSafe, announced a $3 million seed funding round on Tuesday that will help it develop and scale its remote crop-monitoring capabilities for farmers. Venture firm Elefund led the round and was joined by investors Foundation Capital, Global Founders Capital, V1.VC and Great Oaks Capital, as well as angel investors Cory Levy, Josh Browder and Charlie Songhurst. The capital will go toward growing CropSafe’s six-person engineering team and building up its new U.S. headquarters in Santa Monica.
The nascent agtech company began in 2019 as a project between McElhone and his co-founder and high school classmate, Micheál McLaughlin. Growing up in the Northern Irish countryside, the pair developed an interest in technology, which led to ideas about how such technology could aid the agricultural communities they were raised around.
“We noticed that there was a lot of really new, cool technology coming into the farming market at the time,” McElhone told dot.LA. “But every single farmer in our area hadn't a clue how to get started with all this new fancy technology, because they would have to go to training sessions or learn how satellite imagery from NASA works. And farmers—their job is to farm, not to interpret data.”
The first version of CropSafe’s software aimed to bridge that gap. At its core, the platform is an interpretation engine that scrapes and parses through troves of weather data and satellite imagery to find the information that farmers need to grow and harvest more effectively. “CropSafe did that work for you and spots useful nuggets like, ‘Hey, there's blight in field no. 14; here's the exact location and what you need to do next,’” McElhone explained.
But the project, which began simply as a tool for friends and family in Northern Ireland, started drawing attention from users around the world; to the founders’ surprise, people began offering to pay for the service. “That was kind of a turning point—realizing it wasn't just our 200 people that wanted to use it,” McElhone said. So he packed his bags and moved to Southern California at the start of this year to try to build out the software in one of agtech’s hottest markets.
McElhone and McLaughlin now believe there’s a better way forward that would position CropSafe as more akin to a fintech platform for farmers: Because the software collects so much data on farms, it can offer insights into removing bottlenecks that farmers could leverage to secure crucial financing for equipment and other needs.
“If a farm is leasing three combines this year, with the data we have on that farm [and its] crops, we might be able to say: ‘Hey, if you lease an additional combine this year, we know that you will produce so-and-so additional yield and produce $25,000,’” according to McElhone. In an ideal scenario, CropSafe could allow the financing for that combine to be approved instantly on the strength of the data on its platform; the farmer clicks a button on the app, and the combine gets delivered the next day.
So far, McElhone is tight-lipped about partnerships in this area of its business, but said announcements should be coming this summer. The company is also considering offering farmers insights into the best times and places to sell crops, with CropSafe taking a small cut of revenues for the service. (The idea is that farmers would only pay when they see increased sales from using CropSafe’s insights, McElhone said.)
But the move to Santa Monica has already proven fertile for the company, which is planning to announce partnerships with other agtech companies that would allow CropSafe to act more as an operating system—one connecting autonomous tractors, weathers sensors, and other “internet of things” technologies to ensure better, more sustainable crops. With local startups like Future Acres and Abundant Robotics already operating in the space, CropSafe seems poised to benefit from Southern California’s position as a hub for agtech in the U.S.
David Shultz is a freelance writer who lives in Santa Barbara, California. His writing has appeared in The Atlantic, Outside and Nautilus, among other publications.
Cedars Sinai Health Ventures’ Maureen Klewicki on How Tech Is Changing Health Care
On this episode of the LA Venture podcast, Cedars Sinai Health Ventures’ Maureen Klewicki talks about price transparency for health care, the labor shortage crisis and emerging payment models.
Klewicki got her start working in the venture capital industry as the program director at the Techstars Healthcare accelerator. She then spent five years working at L.A.-based venture firm Crosscut. At Cedars Sinai, she helps cut checks of between $1 million and $10 million from the venture firm’s $100 million fund.
“There's one million and one problems right now Cedars Sinai is facing,” Klewicki said. The fund is structured in part to focus on the long-term future of the health care industry, but about half of it is focused on the immediate problems that Cedars doctors and staff are facing.
To get an understanding of their pain points, Klewicki said she talks directly with leaders of departments from nursing to surgery, asking them: “‘What are you thinking about? Where do you need help? And where can we find a company that we can plug in right now?’”
The pandemic has taken a toll on health care workers, Klewicki said, exacerbating a huge nursing shortage and adding more trauma to an already overworked labor pool. But Klewicki also says that the labor force crisis could be a thesis for an entire fund.
“Could you solve it through the use of smart robotics? Could you solve it through computer vision? Could you solve it through ambient scribing?,” she asks. ”Can you do things that make it so that nurses aren't spending 30% of the time logging things into the EHR?”
Another crucial issue for Cedars: keeping the cost of care down. One strategy has been keeping patients out of the hospital if they don't need to be there, and making sure they have a range of services at home. There are a number of different solutions that are being developed toward that end, Klewicki said, from teams that are made up of both health care professionals and tech entrepreneurs.
“You might see a team that is half-Uber and half-health care execs,” she said. “And so that's where I think you start to see these really cool combinations of technologists and people that know health care really well.”
Klewecki said recent changes in how hospitals get reimbursed have incentivized startups that focus on a “value-based” health care model that focuses on preventative care.
“Because that overall care team approach is what keeps the cost of care down,” she said “And so you see a lot of movement from VC-backed and private equity-backed companies in the value-based care space because that's where the payment models are moving.”
That might mean setting up urgent care facilities in different neighborhoods, sending providers to aid patients at home or focusing more on telemedicine rather than bringing patients to hospitals.
Klewicki added, “If you do it right, you can have a very valuable company that is improving outcomes for patients.”
Click the link above to hear the full episode, and subscribe to LA Venture on Apple Podcasts, Stitcher, Spotify or wherever you get your podcasts.
dot.LA Engagement Fellow Joshua Letona contributed to this post.
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