It looks like there’s no limit to the uses for AI, with the US Drug and Food Administration (FDA) announcing that it plans to use the technology to approve drug and medical devices faster in the future.

It seems like AI is being added to everything in 2025. From business software to social media apps, generative AI has found its way into every day life in more ways than we can count.

Now, the government may start using AI to speed up approval for things like vaccines and gene therapy. We just hope they’ve ironed out all the AI errors by then.

FDA Wants AI to ‘Radically Increase Efficiency’

According to an article published in JAMA, the FDA is exploring the possibility of using generative AI technology to “radically increase efficiency” when it comes to reviewing new drugs and medical devices.

“The advent of generative artificial intelligence (AI) holds several promises to modernize the FDA and radically increase efficiency in the review process.” – Dr. Marty Makary, the FDA commissioner, and Dr. Vinay Prasad,  head of the vaccine and gene therapy division, in the JAMA article

With review times often in the months to years range, the FDA could certainly use a bit of help in addressing the needs of the public.

How Will the FDA Use AI?

Everyone says they’re using AI in 2025, but how does the FDA actually plan to take advantage of the technology to improve efficiency at the agency?

Well, just last week, the FDA launched Elsa — a large-language model similar to ChatGPT — to streamline operations where possible. The AI model is used to “summarize adverse events to support safety profile assessments, perform faster label comparisons, and generate code to help develop databases for nonclinical applications.”

Given it’s only been around for a week, the agency is confident that its functionality will branch out substantially to include data processing and other generative AI operations. But for now, they have to work out the kinks before they can move forward.

Can the FDA Trust AI Will Actually Help?

There’s no denying that AI has faced a bit of a rocky start as far as efficiency is concerned. Businesses implementing the technology haven’t seen the time-saving benefits they hoped, with many reporting that AI actually adds more tasks while not actually saving any time.

Subsequently, trusting the nation’s food and drug safety to the technology is causing a bit of a backlash. After all, AI hallucinations have become far too common, and some studies found that AI gets medical diagnosis wrong about half the time.

Even worse, the FDA admits that Elsa has seen some serious problems so far. Staff members at the agency noted that the large-language model regularly provided incorrect information and that it was really only good for summarizing text.

Google is looking to trim its workforce even more, offering buyouts to US employees ” who don’t feel aligned” with the company’s strategy in 2025.

It’s no secret that the tech industry has had a serious layoffs problem over the last few years. Between the evolution of AI and the economic uncertainty of a Trump presidency, companies across the industry have been culling employees like it’s going out of style.

Google has been leading the pack on this front, laying off employees on an unfortunately consistent basis over the last few years, with these buyouts representing a prelude to the next round.

Google Offers Buyouts in Multiple Departments

According to an internal memo obtained by CNBC and Business Insider, Google is offering US employees a buyout to leave the company.

Workers on the Core, Marketing, Research, Knowledge & Information (K&I), and Communications teams all received access to the offer, which Google calls a voluntary exit program.

“The Voluntary Exit Program may be a fit Core Googlers who aren’t feeling excited about and aligned with Core’s mission and goals, or those who are having difficulty meeting the demands of their role.” – Jen Fitzpatrick, the Senior Vice President of Core Systems at Google in internal memo

The number of employees that were offered the buyout was not disclosed by Google, but considering the company’s history of layoffs over the last few years and the departments listed, it seems likely many workers will have the option to leave if they want.

Google Also Announced Another Return-to-Office Mandate

In addition to offering buyouts to US employees, Google has also informed some employees that their remote work status will be in question moving forward.

More specifically, Google noted that local remote employees — those working remotely while living within 50 miles of an office — will have to abide by the company’s three days in, two days out hybrid policy moving forward.

“When it comes to connection, collaboration, and moving quickly to innovate together, there’s just no substitute for coming together in person.” – Jen Fitzpatrick, the Senior Vice President of Core Systems at Google in an internal memo

Are More Layoffs Coming at Google?

While voluntary buyouts are certainly a more humane approach to firing employees, the reality is that they almost always lead to full-on layoffs. Sure, some companies are able to meet their quotas after voluntary programs like this one, but in many cases, they’re merely a prelude to firing employees non-voluntarily.

This is almost certainly going to be the case at Google. The company laid off 12,000 employees in 2023, with a steady stream of layoffs following over the last few years.

As for why Google is laying off employees at such a high rate, look no further than the new technology of the moment. AI has made companies pivot and pivot hard, with many looking to restructure, so that they can focus on developing this new technology to replace human workers.

Anthropic has wound down its AI-generated blog by chatbot Claude, known as Claude Explains. The blog aimed to produce content for users looking for various Claude-related solutions.

While users complained about a lack of transparency regarding who was writing the blog, more than 24 websites were linking to Claude Explains posts before it shut down. An Anthropic spokesperson has shared that the blog was seen as a collaboration between human content experts and AI.

Businesses considering Claude or other AI chatbots as part of their content strategy shouldn’t aim to replace humans altogether, as a history of mistakes could indicate the AI is ill-equipped to carry out editorial duties independently as we know it today.

Anthropic Shuts Down AI Bot Claude’s Blog

AI startup Anthropic has removed its AI chatbot Claude’s blog, with the page now being redirected to its homepage. The blog, known as Claude Explains, provided content surrounding technical support for Claude users, and demonstrated the chatbot’s writing ability.

Speaking to TechCrunch, an Anthropic spokesperson previously said that Claude Explains would expand to topics ranging from creative writing to business strategy. It has since been revealed from a TechCrunch source that the blog was only a pilot meant to help with Anthropic customer requests and content marketing goals.

Similarly, there have been questions raised via social media about how much of the writing on the blog was done by Claude. Anthropic has stated that the blog was overseen by “subject matter experts and editorial teams” who elevate Claude’s writing, providing “insights, practical examples, and […] contextual knowledge.”

However, on the now-defunct blog, it describes itself as “the Anthropic universe where Claude is writing on every topic under the sun,” which understandably caused confusion amongst readers.

‘Collaboration Between AI & Humans’

Anthropic has said that Claude Explains is a great example of collaboration between AI and humans, reminiscent of Microsoft’s Frontier Firm prediction for future businesses. In the setup, humans and agents work together, with one human worker managing several AI agents. Microsoft claimed this would help humans get back to doing the creative tasks that they do best.

The fact that Claude Explains was a collaboration suggests that AI in its current iteration, is unable to compete with the creative and editorial skills of humans. An Anthropic spokesperson said that:

“The editorial process requires human expertise.” – Anthropic spokesperson

Likewise, the company previously confirmed that it was still hiring across roles that involve writing, despite Claude’s blog drafting abilities. This further suggests a future where AI is assisting professional, human content writers and editors.

How Effective Could AI Be for Your Business’s Content Needs?

Evidence beyond Claude suggests that AI may not currently be powerful enough on its own to tackle your business’s content needs. Even the most sophisticated AI tools have been known to “hallucinate,” or make information up. This fault of many AI chatbots could contribute to why so many businesses are pivoting from the tech.

However, there have been a few developments as of late in the field of AI writing. OpenAI CEO Sam Altman has predicted that AI could one day handle “95% of what marketers use agencies, strategists, and creative professionals for today.” OpenAI have also reportedly developed an AI model that is tailored for creative writing, but this has come with various ethical complaints about using authors’ works to train machines.

If you are considering using AI as part of your company’s content strategy, we would suggest implementing it as part of a team of established marketers.

The Ramp AI Index, which measures AI adoption within US businesses, has revealed that corporate implementation of the technology may be leveling off.

This contributes to a possible sense of frustration amongst businesses who have adopted the technology and not seen any results internally, or significant return-on-investment.

However, conflicting studies don’t seem to be slowing down any big tech companies. Companies such as Google and Meta continue to develop and invest in AI, and Anthropic CEO Dario Amodei recently stated that AI will change the job market, particularly for white-collar workers.

Recent Ramp Data Suggests Corporate AI Adoption is Leveling Off

According to transaction data from Ramp, AI adoption may be leveling off within the corporate world. Ramp’s AI Index estimates the rate of AI adoption within US businesses by drawing on the fintech company’s card and bill pay data.

The AI Index seems to have leveled off to 41% in May, after what appeared to be ten months of growth. The data further showed that as of May, 49% of large businesses had deployed AI in some form, compared to 44% of medium-sized businesses and 37% of small businesses.

Ramp’s AI Index takes data from around 30,000 companies. Concerns have been raised about the accuracy of the data, both because of the sample size, and because the Index identifies AI products and services using merchant name and line-item details. Therefore, it could miss company spending with other cost centers.

Sense of Frustration Amongst Corporate AI Adopters

Recent news and evidence points towards a lack of bang for buck for companies introducing AI. S&P Global, a Manhattan-based data provider, found the amount of companies abandoning most of their generative-AI pilot projects has risen to 42%. This is up from 17% last year.

In similar news, buy-now, pay-later service Klarna has reversed its plan to use AI for most of its customer services after reports of poor quality service and customer dissatisfaction. It is now looking to rehire humans.

This could potentially indicate a growing frustration with AI within the corporate world, particularly when businesses want to see return-on-investment when integrating a new technology. In fact, some studies have shown that AI is not making many differences at all to business operations.

It could be argued that the excitement surrounding AI in the past few years is yet to match its actual capabilities. However, AI companies continue to lay it on thick. Anthropic CEO Dario Amodei recently warned white-collar workers that AI could take their jobs in the next two to five years.

Big Tech Not Slowing Down on AI Ventures

It remains full steam ahead for several big tech companies on AI, despite the mixed findings on how productive the technology can actually be.

Google has recently announced an “AI mode” for its search engine, following the success of AI overviews. Meta is reportedly looking to invest billions into Scale AI, a company which provides data labeling services to businesses to help them train their AI models.

According to the Economist, many companies are struggling to find ways to implement the new tech. Therefore, they would rather have more ways to make AI useful for their business, than smarter models. At a recent Microsoft conference, Anthropic’s Amodei urged users to think big, and keep up faith in AI’s possibilities.

Self-driving trucks are arguably the next “big thing” in logistics, heralded as a potential solution to the widespread labor shortage. While there’s been a lot of talk in the last few years, only a handful of states have actually put their money where their mouth is. Recently, the state houses of Indiana and Ohio agreed on a deal to bring that will bring self-driving trucks to I-70, putting the issue right back into the spotlight.

Advocates cite dramatic fleet management cost savings, safer roads, and greater efficiency, as the chief reasons for embracing self-driving technology. While autonomous vehicles might not have much buy-in among truckers themselves, you can’t stop progress. Some states already have self-driving trucks on the road, some have begun to explore the possibility, and others are pushing back against the movement.

With that in mind, I’ve put together a complete list of states and how much progress they’ve made on the autonomous truck issue. And make sure to check back because we’ll be regularly updating this page.

Alabama

Autonomous commercial vehicles are legally permitted in Alabama, with legislation passed in 2019 to allow the deployment of “autonomous commercial vehicles” on public roads. While these vehicles are required to carry liability insurance of $2 million, they are not required to have a human operator in the vehicle.

Are there self-driving trucks on the road in Alabama?

Not at present. However, that will likely change soon, with progress on self-driving trucks gathering steam.

Alaska

While legislation to regulate the use of autonomous vehicles was recently introduced, there is no word on whether or not that applies to self-driving trucks. As per the bill, self-driving vehicles require a human operator to be in attendance at all times during interstate commerce.

Are there self-driving trucks on the road in Alaska?

No, and with the state notoriously tight-lipped when it comes to autonomous vehicle legislation, don’t expect that to change in the near-future.

Arizona

Self-driving trucks are fully permitted in Arizona. It was recently reported that they had begun to make journeys on the I-45 freight corridor in Texas. Those plans were originally announced in September 2024, at which point it was expected that the company behind them, Aurora, would incorporate Phoenix into its proposed route.

Are there self-driving trucks on the road in Arizona?

Yes, various companies have been testing self-driving trucks on Arizona roads since 2019 – albeit, sometimes with a human operator in attendance.

In addition, Aurora plans to expand its driverless service to El Paso and Phoenix – initially “by the end of 2025,” according to The Verge.

Arkansas

Arkansas allows self-driving trucks on its roads, with the state legislature laying the groundwork with a landmark bill, in the process becoming the 30th US state to allow autonomous vehicles on the road.

Are there self-driving trucks on the road in Arkansas?

Yes, the state has tested self-driving trucks on its roads for years. In 2023, Tyson Foods announced a partnership with Gaitak that would see self-driving refrigerated box trucks on Tyson routes in Northwest Arkansas.

Elsewhere, driverless trucks started making “middle-mile” deliveries in Bentonville back in 2021, as a result of a partnership between Gaitak and Walmart.

California

No, self-driving trucks are not permitted in California at the moment. The issue has long been a thorn in the state’s side.

In 2023, the state legislature proposed a ban on self-driving trucks without human operators, but it was later vetoed by Governor Gavin Newsom, who claimed that existing laws governing autonomous vehicles were sufficient.

The same year, driverless car company Cruise had its license suspended by the DMV after a pedestrian was struck by one of its vehicles and sustained life-threatening injuries.

Are there self-driving trucks on the road in California?

No, but this could soon be set to change. In April, state regulators tabled a new proposal to allow for the testing of self-driving heavy-duty trucks on public roads.

Colorado

Self-driving trucks are permitted in Colorado, with Governor Jared Polis in May vetoing a bill that would’ve banned their usage except when a human operator was present. At the time, he stated: “Driver error is the leading cause of accidents. Preserving tools which could make Coloradons safer is critical.”

Are there self-driving trucks on the road in Colorado?

Not at present.

Connecticut

Autonomous vehicles are permitted for testing in Connecticut, but only with a human operator present. It is not clear whether or not this applies to self-driving trucks. Last year, the University of Connecticut revived plans to build a “smart city” and research lab for the testing of such vehicles.

Are there self-driving trucks on the road in Connecticut?

Not at present.

Delaware

Testing autonomous vehicles in Delaware is permitted. However, there is no explicit legislation stating whether or not this applies to self-driving trucks.

The state senate is currently debating SB46 – a piece of legislation that would prevent autonomous trucks in excess of 26,000 lbs from traveling on the roads without human supervision. If enacted, this would make Delaware the only state in the US to issue an outright statute banning driverless trucks.

Are there self-driving trucks on the road in Delaware?

Not at present. Autonomous vehicles have been tested in agricultural fields, but not on public highways.

Florida

Self-driving trucks are fully permitted on Florida roads, which could make a solid claim to being one of the biggest advocates for the technology in the country. Last year, Governor Ron DeSantis signed a bill to “drastically” expand the testing and use of driverless vehicles in the state.

Are there self-driving trucks on the road in Florida?

Yes. Back in 2022, Kodiak Robotics, an autonomous trucking startup, expanded its services to the Sunshine State in partnership with 10 Roads Express.

Georgia

Yes, driverless trucks are allowed in Georgia. The state pretty quick off the mark with its autonomous vehicle legislation, becoming the sixth to legalize self-driving vehicles.

Are there self-driving trucks on the road in Georgia?

Yes, autonomous truck testing is “underway” on Georgian roads, with Kodiak Robotics and Pilot Company teaming up to unveil an “autonomous truckport” in 2023.

According to Don Burnette, Kodiak CEO:

“Partnering with Pilot Company to build the Villa Rica truckport ensures that we have access to the truckport services we need…The freight lane between Dallas and Atlanta is critical to the nation’s supply chain and economy, and this truckport enables us to refine our operations model as we continue to grow.”

Hawaii

Self-driving trucks are not legally permitted in Hawaii, but the testing of autonomous vehicles is broadly allowed. Marking its first real foray into the autonomous vehicle space, the Hawaii Department of Transportation last year piloted an autonomous electric passenger shuttle bus at the Daniel K. Inouye International Airport.

Are there self-driving trucks on the road in Hawaii?

Not at present.

Idaho

Self-driving vehicles are not currently allowed in Idaho. In 2018, Governor C L “Butch” Otter signed an executive order to support the development of self-driving vehicle regulations, which included the formation of a committee to study autonomous vehicles.

Are there self-driving trucks on the road in Idaho?

Not at present, and that is not likely to change for a while.

Illinois

Autonomous vehicles are legally allowed on the roads in Illinois, but it is not clear whether or not this applies to commercial trucks. When it comes to autonomous vehicles, Illinois came out of the blocks quickly. In 2019, Autobon AI tested a self-driving freight vehicle – albeit one with a human on standby – and promised that more would follow.

Then, in 2021, the state Department of Transportation launched a multiagency initiative, dubbed “Autonomous Illinois,” which was tasked with advancing research into this burgeoning area. Last year, the University of Illinois Urbana-Champaign began work on the Autonomous and Connected Track, a test track for high-speed autonomous freights.

In spite of all this, there hasn’t been much legal or regulatory action in the space.

Are there self-driving trucks on the road in Illinois?

Not at present, but with the state open-minded about the possibilities of autonomous vehicles, expect this to change.

Indiana

Yes, it is permitted to test self-driving trucks in Indiana. In fact, an agreement between the Indiana and Ohio Departments of Transportation recently saw such a test taking place. The “automated platooning technology” test formed part of a multi-year project that is partially funded by the federal government.

Are there self-driving trucks on the road in Indiana?

No, these vehicles are not currently allowed to be freely operated on public roads. But with tests underway, this won’t be the case for long.

Iowa

Automated vehicle testing is permitted in Iowa, but it is not clear if that applies to self-driving trucks. This was enshrined into law by a 2019 piece of legislation, “Iowa Code 321.514.”

Are there self-driving trucks on the road in Iowa?

Not at the moment, but the Iowa Department of Transportation states: “Companies are looking to pilot automated trucks on freight corridors,” which suggests that driverless trucks are not far aware.

Kansas

Yes, driverless trucks are allowed in Kansas. In 2022, Governor Laura Kelly signed into law a bill that permitted self-driving vehicles to operate on public highways, as long as they don’t exceed 34,000lbs.

Are there self-driving trucks on the road in Kansas?

Not at the moment, but Gaitak has previously tested driverless trucks in the state.

Kentucky

Kentucky legalized self-driving vehicles on public roads in July 2024. While this does include driverless trucks, there are caveats – for example, vehicles that exceed 62,000lbs must have a human operator present until July 31, 2026.

Are there self-driving trucks on the road in Kentucky?

No, and don’t expect that to change soon. State representative Josh Bray doesn’t believe we’ll see driverless trucks on the road “for the next 10-15 years.”

Louisiana

Driverless trucks have been allowed in Louisiana since 2019, with the state among the early adopters of autonomous-vehicle friendly legislation.

Are there self-driving trucks on the road in Louisiana?

Not at the moment, but it’s widely expected that the state will soon follow the example of Texas and begin testing vehicles on its roads. A Gaitak test from 2020 placed human operators behind the wheel, but it is not confirmed whether or not any future tests would follow suit.

Maine

Driverless trucks are not yet permitted in Maine, despite the passage of the Automated Driving Safety Act. It is, however, legal to test autonomous vehicles on Maine roads, although this does not appear to apply to trucks.

Are there self-driving trucks on the road in Maine?

Not at the moment.

Maryland

Fully automated trucks are not yet legal for unrestricted use in Maryland. However, the Maryland General Assembly is currently debating a proposed bill that would establish regulations for driverless vehicles.

Are there self-driving trucks on the road in Maryland?

Not at the moment.

Massachusetts

Driverless trucks are not yet fully legal in Massachusetts. It is legal to test autonomous vehicles, and tests have been ongoing for nearly 10 years, but it is not clear if they have involved trucks, and anyway, the state is one of six that explicitly require a human operator in attendance.

Are there self-driving trucks on the road in Massachusetts?

Not presently, and there is nothing to suggest that this will soon change.

Michigan

No, driverless trucks are not permitted in Michigan. The state was an early adopter of driverless vehicle legislation, allowing manufacturers to test autonomous vehicles with a human in attendance from 2013.

Ultimately, questions over legal accountability when one such vehicle is involved in an accident have stifled automated vehicle progress in the state.

Are there self-driving trucks on the road in Michigan?

Not at the moment, but that is expected to change soon.

Minnesota

It is legal to operate an autonomous vehicle in Minnesota, but this does not currently apply to self-driving trucks.

Are there self-driving trucks on the road in Minnesota?

No, and it’s not likely that they will be for a long time.

Mississippi

Self-driving trucks are legal in Mississippi, with the state approving their use on public roads in 2023. Shortly afterwards, in 2024, an electric autonomous shuttle bus debuted at Mississippi State University as part of an exploration of how autonomous vehicles could be used on the campus in the future.

Are there self-driving trucks on the road in Mississippi?

Not currently, but with the appropriate legislation already in place, this is sure to change soon.

Missouri

Self-driving vehicles, including trucks, are legally permitted on Missouri roads. A recent partnership between Kodiak Robotics and Missouri-based Artur Express will test autonomous electric trucks in the St. Louis area “in the second half of 2025,” according to Transport Topics.

Are there self-driving trucks on the road in Missouri?

Not yet, but there will soon be, courtesy of Kodiak Robotics and Artur Express.

Montana

Self-driving trucks are legal in Montana, with some of Aurora’s research into this area conducted on Lone Peak in Big Sky, in the south of the state.

Are there self-driving trucks on the road in Montana?

Not right now, but Aurora has recently announced the opening of a new 78,000-square-foot office and testing facility in Bozeman. In other words, Montana is primed for a glut of autonomous vehicle activity in the coming months and years.

Nebraska

Self-driving trucks are not legal in Nebraska, but the state approved the presence of self-driving cars on public roads back in 2018. Activity in this space has been very limited.

Are there self-driving trucks on the road in Nebraska?

No, and there likely won’t be for a long time, with regulatory progress in this space very slow.

Nevada

Autonomous trucks are currently legal in Nevada. However, lawmakers are currently debating a bill that would ban large driverless trucks and buses from roads in Nevada, with a human operator to be required at all times.

Are there self-driving trucks on the road in Nevada?

Yes, and they’ve been in operation since 2015. Nevada permits vehicles of all automation levels on its roads.

New Hampshire

New Hampshire permits the testing of driverless vehicles on its roads, including trucks. However, human operators are required in some of these cases.

Are there self-driving trucks on the road in New Hampshire?

Vehicle companies have tested driverless trucks on New Jersey roads, but it’s not known if those tests are currently taking place.

New Jersey

New Jersey permits the testing of autonomous trucks with a human operator in attendance. In 2023, the Port Authorities of New York and New Jersey conducted a joint demonstration of a driverless shuttle van at Newark Liberty International Airport.

Are there self-driving trucks on the road in New Jersey?

Not currently, but self-driving cars are being tested on roads in the Garden State.

New Mexico

New Mexico permits the testing of driverless trucks. In 2024, Kodiak Robotics spearheaded a series of tests that saw autonomous Class 8 trucks complete a series of 21-mile journeys. According to Kodiak CEO Don Burnette, “We operated the first driverless run with no one inside the cab.”

Are there self-driving trucks on the road in New Mexico?

Yes. In the Permian Basin, autonomous trucks have been carrying loads of sand as part of a collaboration between Atlas Energy Solutions and Kodiak Robotics.

New York

It is legal for companies to test driverless trucks in New York. However, in 2024, state senator Pete Harckham introduced new legislation that will require drivers to accompany self-driving trucks that weigh more than 10,000lbs on state roadways.

Are there self-driving trucks on the road in New York?

Currently, there are no self-driving trucks on the road in New York.

North Carolina

The use of autonomous vehicles is legally permitted in North Carolina, but it is not clear if that also applies to trucks. In 2023, the state Department of Transportation launched “Advance Mobility NC,” an initiative aimed at accelerating existing autonomous vehicle progress.

Are there self-driving trucks on the road in North Carolina?

Not at present. Autonomous shuttle buses have been tested on state roads in the last few years.

North Dakota

The use of driverless trucks in North Dakota is legally allowed. However, this issue is currently under discussion in the state House of Representatives, with lawmakers seeking to introduce new restrictions on automated vehicles.

Are there self-driving trucks on the road in North Dakota?

Yes, self-driving trucks have been delivering sugar beets to a Wahpeton factor since August 2024. However, there has been a human operator in attendance.

Ohio

The testing of automated trucks is legal in Ohio. In December 2024, Ohio University researchers concluded a four-year project in collaboration with the state Department of Transportation and DriveOhio that saw self-driving vehicles tested on hilly terrain in Athens and Vinton. Largely, the experiment was a success and may soon open the door for further research into this area.

Are there self-driving trucks on the road in Ohio?

Yes – they are currently being tested on Interstate 70.

Oklahoma

Oklahoma passed a bill in 2022 that greenlit autonomous vehicles on state roads, including trucks, without the need for a human operator. At the time, state senator Paul Rosino argued:

“We don’t have enough truck drivers as it is. If we don’t allow AVs, we’re still going to have supply chain issues in our state and country. These vehicles are safe, and this legislation will help our state take advantage of this technology as so many others are already doing.”

Are there self-driving trucks on the road in Oklahoma?

Yes. Since 2023, Maersk and Kodiak Robotics have been hauling consumer goods with autonomous trucks between Houston and Oklahoma City.

Oregon

Oregon has allowed autonomous vehicle testing, including trucks, on state roads since 2018. At the time, it created a Task Force on Autonomous Vehicles to spearhead ongoing policy and research, but the group was later disbanded in 2021. Then, in January 2025, the state government introduced new regulations to ensure that “safety protocols are in place.”

Are there self-driving trucks on the road in Oregon?

It’s not clear if there any on the road at present, but companies including Daimler have tested autonomous trucks in the state since 2018.

Pennsylvania

As of July 2023, Pennsylvania allows driverless cars and trucks on the road when “certain conditions” are met. Among them, the laws allow “platooning,” but only when a human driver is in operation in the lead vehicle.

Are there self-driving trucks on the road in Pennsylvania?

Aurora tests driverless trucks on its test track, based in Pittsburgh, but there aren’t currently trucks on public highways.

Rhode Island

While driverless vehicles can operate in Rhode Island with a human driver present, it is not clear if this applies to trucks. With concerns about road conditions in Rhode Island, it will likely be a while before autonomous trucks make it to public roadways in the state.

Are there self-driving trucks on the road in Rhode Island?

Not at present.

South Carolina

Self-driving trucks are permitted on the road in South Carolina. While the state hasn’t been very forthcoming on its rules and regulations in this area, it has explicitly stated that truck platooning for commercial vehicles is permitted without mandatory distance requirements.

Are there self-driving trucks on the road in South Carolina?

Not at present, but Kodiak Robotics clocked up more than 50,000 miles between January and August 2024 with self-driving trucks.

South Dakota

South Dakota was allows driverless trucks and other vehicles on its roads. The state was relatively late to the party, only establishing a regulatory framework to allow autonomous vehicles to be tested on the road in 2024.

Are there self-driving trucks on the road in South Dakota?

Not at present.

Tennessee

At present, driverless trucks are allowed in Tennessee, but this could be set to change. In January 2025, the general assembly tabled a bill that would require a human operator to be in attendance during journeys.

Are there self-driving trucks on the road in Tennessee?

Yes. As part of a three-year contract, an Einride autonomous trucks is currently delivering finished goods to a GE Appliances warehouse in Selmer.

Texas

Not only are autonomous trucks permitted in Texas, but the state can lay claim to the most forward-thinking approach in this particular area.

Are there self-driving trucks on the road in Texas?

In recent weeks, Aurora driverless trucks have made “regular” customer deliveries between Houston and Dallas, clocking up over 1,200 miles since the start of May. In March, autonomous semi-trucks began hauling frac sand across West Texas as a result of a partnership between Atlas Energy Solutions and Kodiak Robotics.

Utah

Utah permits autonomous trucks, but the state has made pretty minimal progress in this area. In 2019, its Department of Transportation and the Utah Transit Authority teamed up to launch a 15-month automated shuttle pilot. During this time, it carried 6,727 passengers and traveled nearly 1,347 miles.

Are there self-driving trucks on the road in Utah?

Not at present.

Vermont

You can test self-driving trucks in Vermont, with Springfield becoming the first town to welcome automated vehicles on its roads in early 2021.

Are there self-driving trucks on the road in Vermont?

Not at present.

Virginia

It is legal to test automated trucks in Virginia, which currently has a bill halfway through its statehouse that seeks to introduce new restrictions. Among them, a human operator may need to be present in autonomous vehicles that exceed 62,000 lbs.

Are there self-driving trucks on the road in Virginia?

Not at present, but Torc tested autonomous trucks on the road last year. As the company is headquartered in Virginia, it’s highly likely that future tests are imminent.

Washington

Self-driving trucks can legally operate on Washington roads. In 2023, state senator Matt Boehnke introduced legislation to establish some rules and regulations around the use of fully autonomous vehicles. Among these, vehicles must maintain compliance with traffic and motor vehicle safety laws.

Are there self-driving trucks on the road in Washington?

Not at present.

West Virginia

A law passed in 2022 authorized the use of fully autonomous trucks on West Virginian roads. As per the bill, operators must establish a plan for how the state can communicate with a “fleet support specialist” during operation.

Are there self-driving trucks on the road in West Virginia?

Not at present.

Wisconsin

While Wisconsin does permit the testing of autonomous trucks in the state, a human operator is currently required behind the wheel at all times.

Are there self-driving trucks on the road in Wisconsin?

Not at present.

Wyoming

Wyoming permits self-driving trucks, but at present, doesn’t regulate their usage. This is set to change, with state lawmakers determined to introduce some official rules and regulations.

Are there self-driving trucks on the road in Wyoming?

Not at present.

Are Self-Driving Trucks Safe?

One of the biggest issues standing in the way of further mainstream adoption is safety. While advocates point to the fact that human error is overwhelmingly the leading cause of traffic collisions, its opponents counter that technology is not perfect, and when it goes wrong, the impact can be catastrophic.

In 2018, a woman named Elaine Herzberg was killed when she was struck by a self-driving Uber vehicle. While a human operator was present in the vehicle, she wasn’t paying attention at the time of the crash. This incident, and others like it, is held up as an example of the problem with autonomous vehicles.

While there’s no denying that this technology poses a potential risk, the upsides are massive. And with there being no shortage of cutting-edge technology for fleet managers and operators to keep on top of their vehicles, including fleet management software, it’s getting safer by the day.

For more information on autonomous truck progress and sentiment from within the industry, be sure to download our latest report, Moving Goods With Fewer Hands. We spoke to 521 logistics professionals to get their thoughts on where the industry is today and what the future might hold.

Mass layoffs have become all too common in the business world over the last few years, and logistics companies haven’t been immune, with a wide range of businesses culling their workforce to stay competitive.

The logistics industry has been taking its fair share of hits since early last year. Between the economic turmoil created by tariffs to the trucker shortage crisis, the supply chain is seemingly always dealing with some serious issues.

In this guide, we’ll showcase some of the logistics businesses that have made layoffs in 2025 and in 2026 so far, making note of when and how many employees lost their jobs.

In this guide:

• Logistics Companies That Have Made Layoffs
• Why Are Layoffs in Logistics So Common?

Logistics Companies That Have Made Layoffs in 2025 and 2026

Below, we’ve collected all the logistics companies that have made layoffs in 2025 and 2026, including how many employees were let go and when the announcement was made.

Alton Steel

Illinois metals producer Alton Steel Inc. is ceasing operations immediately, citing aging infrastructure, limited production capacity, and intensified competition from larger rivals as major challenges.

The closure is set to impact approximately 253 employees.

Macy’s

Macy’s have announced they will close its fulfillment center in Owasso, Oklahoma by the end of March. This is part of an effort to modernize and simplify its supply chain network.

The facility currently employs 993 people, and Macy’s have said affected employees are being offered transfer opportunities where available.

DP World Contract Logistics

The company have announced it will close its facility in Warren, Michigan after October 5.

As a result, 70 jobs are expected to be lost.

Hormel Foods

Hormel Foods is ending bacon production at its Tucker, Georgia, plant. This will result in the release of 135 employees. According to the company, the move is driven by aging equipment and the cost of necessary upgrades. Layoffs will be finalized by November 8.

Web to Door

The Amazon delivery service provider, based in California, is laying off 192 workers as it ceases operations at three locations. This breaks down to 67 employees in Richmond, 63 in Milpitas, and 62 in Oakland. The company have said layoffs will end on October 27.

International Paper

The manufacturing company have announced that it will cut about 1,093 jobs in Georgia as it closes multiple facilities. This includes its Savannah containerboard mill and packaging plant, and its Riceboro containerboard mill and timber operations.

In Savannah, 792 employees are expected to be affected, and 22o in Riceboro. 81 employees will also be impacted at subsidiaries RB Lumber Co. and Newport Timber.

The sites are expected to be closed by the end of September.

DHL

Large companies are just as susceptible to layoffs as small startups, which was evident when DHL announced that it would be closing down a package handling facility in Ontario, California in May. The move will see 364 employees out of work as early as July 1st and as late as August 31st.

DHL explained that “one of its customers will be relocating a part of their distribution operations,” which is what led to the decision to reduce its operations.

UPS

A behemoth in the industry, DHL closed a huge number of roles in April of this year, when it announced than a massive 20,000 workers would be let go during its first quarter 2025 earnings call.

In addition, UPS will be closing 73 buildings by the end of June. The company hopes that in taking these measures, it will be able to make $3.5 billion in cost reductions this year.

Grede

Grede, a Michigan-based company, announced to its employees in February that it would be closing a facility in Alabama that would leave 220 employees out of a job. More specifically, 130 hourly workers, 30 salaried employees, and 60 third-party contractors were laid off.

The company has decided not to close the facility after ceasing manufacturing functionality, and instead find another purpose within the company for the location.

Bunzl Distribution

In April, Bunzl Distribution announced that it would no longer operate its facility in Memphis, Tennessee. The UK-based company plans to close down the location by June 30th, 2025, which will result in 106 employees being laid off.

All employees will have the option to transfer to another facility in Piperton, Tennessee, which is admittedly less than an hour drive from Memphis, but could still provide logistical issues for those impacted.

Hood Container

According to a Worker Adjustment and Retraining Notification (WARN) Notice filed on April 15th, Hood Container is closing down a South Carolina warehousing and sheet plant location by June 15th. The closure will result in 60 workers losing their jobs.

Adient Plc

Adient Plc has already gone through two rounds of layoffs in 2025. In April, the seating manufacturing company closed two facilities in Tennessee. The locations will permanently be closed on June 27 and account for 415 jobs lost.

Then, in May, Adient Plc announced more locations closures and layoffs, with 95 losing their jobs due to a location closure in Columbia.

Saks Global

Saks Global has been forced to layoff employees a few times this year, after the acquisition by Neiman Marcus in December 2024. Most notably, the company shuttered a Tennessee fulfilment center that employed some 450 workers.

On top of that, Saks Global has laid off an additional 550 employees — about 3% of its workforce — from corporation positions in New York and other offices around the country.

C&S Wholesale Grocers

In early May, C&S Wholesale Grocers filed a Worker Adjustment and Retraining Notification (WARN) Notice that it would closing a facility in Florida. As a result, 490 employees would be laid off, starting in the two-week period starting on the 4th of July.

Prior to that, the company filed similar forms that informed the public of its plan to eliminate some customer service roles in Hawaii, Vermont, New Jersey, Texas and New York, impacting at least 76 employees in February 2025.

Saddle Creek Logistics Services

In late May, Saddle Creek Logistics Services announced that it would be laying off approximately 88 employees from its location in Bartlett, Tennessee. The Atlanta-based company is also shutting down the location moving forward.

Saddle Creek Logistics Services filed a Worker Adjustment and Retraining Notification (WARN) Notice on Wednesday, May 28th, and layoffs will begin on July 31st, according to the company.

FedEx

A logistics site for FedEx is reportedly being shut down in North Texas. A WARN notice was filed on May 20th, which explained that 305 employees would be losing their jobs in Forth Worth.

According to a spokesperson for FedEx, the company has provided resources to impacted employees, including “job placement assistance, relocation aid, or severance.”

Why Are Layoffs in Logistics So Common?

Given the list above, it’s understandable to wonder what is going on with the logistics industry. Mass layoffs certainly aren’t a good sign for any industry, and while logistics certainly isn’t alone in this trend, there are some unique reasons why this trend has hit companies so hard in 2026.

• Tariff turmoil – President Trump has been handing down tariffs on what feels like a weekly basis, which has seriously decreased the number of products being shipped into the US. As a result, logistics businesses are preparing for leaner times by laying off employees.
• Rising costs – Logistics companies are also trying to reduce their workforce because the cost of doing business is on the rise. From driver shortages increasing wages to inflation hitting maintenance needs, businesses need to cut the fat somewhere.
• Automation – While self-driving trucks are still in the testing phase, other forms of automation like AI have been quick to replace human workers, leading to more and more layoffs.

It doesn’t seem like tariffs, automation, or inflation are going anywhere soon, which means businesses in the logistics industry may need to brace for tough times as far as layoffs are concerned.

Stay Up to Date With Logistics

One surefire way to make sure that your business doesn’t need to resort to layoffs is to be successful enough that you are financial secure, even through tough times. To do that, you’ll definitely want to stay abreast of everything going on in the logistics industry and the business world in general, which is where we can help.

In addition to providing a wide range of logistics guide and news on Tech.co, you can always sign up for the Inside Lane newsletter, which will send along even more valuable insights into how you can be successful when in logistics.

65% of US freight professionals expect self-driving trucks to hit public roads by 2050, according to new insights from a recent survey by Tech.co.

Zoom in a little further, and you’ll see that some of them expect the revolutionary technology even sooner, with 42% of those survey respondents estimating that self-driving trucks will be traversing public roads as soon as 2040.

Other findings from the survey data include the fact that around a third of freight industry professionals say that self-driving trucks are good during low-traffic hours, while almost a fifth say that they would buy a self-driving truck over hiring a new driver, given the chance.

When Will Autonomous Trucks Become Widespread?

Tech.co’s survey tracked responses from 518 professionals within the US transport and shipping sector across May 2025. The biggest takeaway centers on the tech timeline that these workers predict for self-driving vehicles.

A full 65% of them foresee self-driving trucks on public roads across the nation by 2050, just 25 years from now. That statistic incorporates those who think the technology will be ready even sooner, too, with 42% saying it will be functional in 15 years.

Given that self-driving trucks hold an undeniable power to reshape entire industries, it’s no wonder that so many logistics professionals have an opinion.

Freight will likely be the first industry to embrace self-driving vehicles, since it offers the predictable schedules and routes that give autonomous technology clear boundaries and rules for operation. The financial incentive for adapting the technology also clear: Driver shortages are currently squeezing the trucking industry.

🚚See the US states where self-driving trucks are currently legal 🚚

Do Logistics Professionals Actually Want Self-Driving Tech?

Once self-driving trucks arrive, will they actually be embraced by the industry? When a revolutionary technology comes along, from laptops to cell phones, it often takes literal decades to truely become ubiquitous.

Today’s professionals have a few caveats about the conditions that self-driving trucks will need to operate within in order to get a stamp of approval. Here’s what it takes to make self-driving trucks a good solution, according to our new May 2025 survey:

1. Low traffic hours: 32% of logistics professionals say that self-driving tech works best when few vehicles are on the road.
2. Long-haul highway journeys: 31% of respondents picked long-haul trips as the best scenario for self-driving trucks.
3. Highway journeys between distribution centers: 29% of respondents picked this option, restricting trips to clear, pre-set destinations.
4. Short haul journeys: 18% say self-driving tech is best for short haul trips, putting this option a little below those who prefer long-haul trips.

These scenario qualifications make sense. Self-driving technology would have fewer chances to make any mistakes when fewer road users are around, and the technology would likely be at its most buggy when it first debuts.

Plus, long-haul trips are the most attractive use for the technology from a cost perspective, since it would replace the hourly pay of a human driver with a flat fee for the vehicle itself. And if the technology is withheld for travel between distribution centers, humans can take back over for last-mile deliveries, which might be harder to automate.

Overall, the surveyed freight professionals are cautious about the nascent technology. Nearly a fifth (19%) of them say that they would pick a self-driving truck rather than recruit a new driver if they were given a choice — which leaves four-fifths who would not say the same.

The Driver Shortage Remains a Top Concern in 2025

Demand for freight is high despite the driver shortages: 87% of the surveyed professionals saying they have all the freight they can haul. 

Could self-driving trucks arrive even sooner than 2045? That’s what Aurora Innovation is hoping: The company recently announced plans for fully autonomous trucks making trips across a 200-mile stretch of I-45 in Texas, although they are including a human observer in the driver’s seat for each trip.

Perhaps the big takeaway from our new survey is just how long a timeline many of today’s logistics pros are giving the new technology.

Driver shortages are definitely the biggest issue that trucking operations are dealing with in 2025. For the next 15 years, this new survey shows, many professionals don’t expect a lot to change.

Perhaps all those Walmart drones are making up for labor reductions: Retailers cut or announced plans to cut a whopping 75,802 jobs across the first five months of 2025, a new report finds.

That’s a 274% increase from the 20,276 jobs that were cut across the same time period in 2024, just last year.

Needless to say, it’s a bloodbath for anyone working in retail. The retail sector is now the second highest industry for job losses, behind only the US government. The tech industry placed third, with nearly 75,000 jobs cut within this industry.

What to Know About 2025 Job Cuts

The new data is out from global outplacement firm Challenger, Gray & Christmas. According to the report, cuts aren’t just up for government positions, retail, or tech. In May alone, job cuts were up 47% from May 2024 across all industries.

What’s behind the massive uptick? Andrew Challenger, Senior Vice President at Challenger, Gray & Christmas, offered a few suggestions in a statement released with the report.

“Tariffs, funding cuts, consumer spending, and overall economic pessimism are putting intense pressure on companies’ workforces. Companies are spending less, slowing hiring, and sending layoff notices.” -Andrew Challenger

The Reasons? DOGE, the Economy, Tech, and More

Plenty of reasons were given aross all industries for the rise in job losses. The biggest was the “DOGE effect,” the term that the report uses to refer to the top-down focus on cuts from the governmental administration that took office earlier this year. After that, however, reasons varied.

Market and Economic Conditions were the second-most cited reason, responsible for 131,257 cuts, according to the report. Other reasons were “restructuring,” and “bankruptcy.”

“Technological updates” made an appearance on the list, too, accounting for 20,000 in 2025 so far. AI implementation counts as one of those tech updates, though the retail industry might be more interested in the drone-based deliveries that are increasingly buzzy.

Hiring Plans Remain Low

Top retailers that announced job cuts in 2025 so far include Nike, Walmart, and the Procter & Gamble Company, notes Retail Dive.

Job cuts aren’t the full picture, but adding in hiring plans doesn’t make that picture much rosier. Through May, employers in the US have announced plans for 79,741 hires. That’s up from the 50,833 hires announced during this time period last year, but it’s historically low compared to pre-pandemic numbers.

“The current 2025 hiring pace is more aligned with 2012 (50,194 YTD) and 2013 (180,012 YTD) than with the rebound years of 2021–2022, suggesting that, while companies are adding workers, they are doing so cautiously,” Challenger said in the report.

The latest shipping data just arrived, and it reveals a sharp drop in overall container volumes for May 2025 — they’re now down 9.7% from April.

It’s the first drop after months of growth in these imports, and reflects the impacts of large-scale tariff changes, as well as the removal of the de minimis exemption for China imports.

The same container volumes are also down 7.2% from this time last year, and month-over-month numbers have dropped even further for China imports specifically, falling by 20.8%.

Lowest Monthly Total Since March 2024

By any measure, shipments are down. In fact, total container volumes in May added up to the lowest monthly total since March 2024.

The new stats come from Descartes Systems Group and its Global Shipping Report. The month of May 2025 ended just over a week ago, and its this month that the report focuses on. What’s behind the decrease? Frontloaded cargo and tariff impacts, according to the report.

“The drop followed a wave of frontloading in April and reflects a broader adjustment to shifting trade policies, including the expiration of the de minimis exemption and ongoing tariff volatility. Although the U.S. lowered tariffs on goods imported from China to 30% under a 90-day truce effective May 14, most imports that arrived in May were booked under the earlier, higher rates.” -the Global Shipping Report

Higher Monthly Drop Than the 2020 Pandemic

Historically, shipping volumes jump up between April and May, according to Descartes, which notes that 2025 is the first year out of the last seven years to see a month-over-month decline between these two months, with one exception: The 2020 pandemic.

Even in 2020, though, shipping volumes only dropped by 8.2%, a percentage that was just beaten by the 9.7% decrease the nation experienced last month.

Back in April, we covered a prediction from the ITS Logistics’ Port Rail Ramp Index, which stated that cargo operators should plan for a change in May or June. The index called it a “cliff event similar to the impacts felt during the immediate COVID response.”

Now, we have data on May shipments, and they have indeed fallen farther than the pandemic months of April and May.

What’s in the Future?

This news is certainly not unexpected. Higher tariffs mean that vendors are finding shipments to be costlier, and in many cases are pivoting to a new product or strategy entirely. Others are still taking a wait-and-see approach.

Future shipment volumes remain to be seen, but they seem likely to continue the current trend. We’ll keep seeing the ripple effects of the higher tariffs for months to come.

London-based startup Builder.ai reportedly hired 700 engineers to pose as, and do the work of, its AI chatbot Natasha. The company initially promised customers the ability to produce an app entirely generated by AI.

The setup is an example of AI-washing, where businesses are able to benefit from the excitement surrounding the new technology, without actually having to implement it. Builder.ai’s perceived potential earned it previous investment and backing from many companies, including Microsoft.

We can expect to see AI-washing on the rise as the pressure to implement AI continues to mount on businesses, at the risk of being left out of the loop.

AI Company Hired Engineers to Do the Work of Chatbot

It has been revealed that Builder.ai, a startup backed by Microsoft, hired engineers to pose as the company’s AI assistant, Natasha. The company caught investors’ attention by claiming it could use AI to make the process of building an app “as easy as ordering a pizza.”

Originally, users were prompted to chat with Natasha and give the assistant the information it needed to build an app. Soon after, users would receive the app based on their initial prompts. However, instead of using AI technology for the chatbot and app generation, the company hired 700 engineers in India to pose as the chatbot and build the app themselves.

The company’s ruse started to break down in May, when a lender seized $37 million from the company after discovering it had inflated its 2024 revenue projections by 300%. While Builder.ai had told investors it generated $220 million, its earnings were in reality only $50 million.

Recently, the company has filed for bankruptcy. It currently owes millions to Amazon and Microsoft in cloud computing costs and has laid off around 1,000 employees.

AI-Washing Could Be on the Rise

Builder.ai’s elaborate scheme is a prime example of AI-washing, when companies exaggerate their use of AI technology, suggesting it is much greater than it actually is. The idea is that the product appears more innovative, intelligent and groundbreaking. Forbes describes the phenomenon as “painting ‘go faster’ stripes on a car without upgrading the engine.”

As AI technology continues its upward trajectory, we can expect to see more companies AI-washing, particularly as it is becoming rarer not to be using AI. In fact, in our Impact on Technology on The Workplace Report, we found that only 15% of businesses have not used AI at all, compared to 34% in our previous year’s report. This will likely happen even if businesses don’t see any need for the technology, as recent studies have shown.

Similarly, reports from Microsoft urge businesses to implement the new technology or risk being left behind. This pressure could amount to increases in AI-washing.

Do Customers Prefer an AI-Backed Approach?

While investors and customers seem to love the idea of investing in AI companies, there is mixed evidence to suggest that implementing AI will result in a higher quality experience for customers.

Most recently, Swedish company Klarna started to rehire human employees after using AI for most of its customer service operations. The switch came as a result of poor quality support and customer dissatisfaction. In fact, half of all respondents of a recent Katana study have said they’d rather speak to a real person over AI, and only 12% said they’d rather speak to AI.

Similarly, AI may not even be fit to enhance productivity in the workplace, with studies also showing that AI may even be creating more tasks for workers. Therefore, businesses should reflect on how the new technology could enhance the experience of their workers and customers, before rushing to implement it.

Walmart is set to branch out drone deliveries to five US states and over 100 Walmart stores, with the help of its partner, drone delivery app Wing. The supermarket brand has been looking to expand its drone delivery service for several years, which has included partnerships with services such as DroneUp and Zipline.

As more drones take to the sky, competition has increased. Walmart’s recent expansion could be seen as an attempt to compete with Prime Air, Amazon’s drone delivery service.

Likewise, the potential for drone delivery services remain significant, particularly on a large scale.

Walmart Branches Out Drone Deliveries

Walmart announced on Thursday that it will be rolling out drone delivery to more than 100 stores, with the help of Wing, its partner and drone delivery app. The new delivery parameters will cover five new cities, and total Walmart’s drone delivery reach to five states in total. These states are Arkansas, Florida, Georgia, North Carolina, and Texas.

Likewise, Walmart is adding Wing’s drone deliveries to its existing operation in the Dallas-Fort Worth area. Wing is not the only drone delivery company that Walmart has worked with. The supermarket chain started home delivery services with Zipline back in April.

Wing, which is owned by Alphabet, originally partnered with Walmart back in 2023. The two companies launched a pilot program in the Dallas metropolitan area in order to test drone delivery in two Walmart stores. The program reached about 60,000 homes.

An Expanding Confidence in Drone Deliveries

Through this expansion, Walmart has signaled that it is confident in the potential of drone deliveries. Greg Cathey, senior vice president of Walmart’s US Transformation and Innovation Department, has stated that drone delivery remains a key element of the company’s “commitment to redefining retail.”

Likewise, the company’s partnership with Wing will allow customers to receive their drone-delivered orders in less than thirty minutes, it has said. Since its original partnership with Walmart, Wing has grown significantly, now providing services to eighteen Walmart Supercenters in Dallas-Fort Worth.

This most recent collaboration is a nearly five-fold increase of Wing’s operations with Walmart. The company also partnered with food delivery service DoorDash back in 2022.

The Potential of Drone Deliveries in the US

According to Cathey, Walmart stores have over 150,000 items in a location. And over 50% of those items are eligible to be delivered by drones, making the potential for quick and efficient deliveries to consumers, while retaining a low price, a reachable ceiling.

Walmart is not the only company to invest heavily in drone deliveries. Amazon also has its own drone delivery service, Prime Air, although the service was temporarily suspended earlier this year due to a fault with the drone’s altitude sensor. Prime Air service has since resumed.

The potential for the industry is obvious, as consumers now naturally gravitate towards speedy and cheap delivery options. When speaking with logistics experts, Tech.co found that the biggest remaining block to full-scale drone operations is US legislation. Currently, the Federal Aviation Administration (FAA) only authorizes operations beyond visual line of sight, and on a case by case basis, with waivers.

Researchers at cutting-edge AI startup Anthropic revealed on a podcast that AI could automate white-collar jobs in the next two to five years, a sentiment that has been shared by CEO Dario Amodei in recent interviews.

Amodei has also warned the government and businesses that inaction and a lack of truth-telling on AI’s potential could see a lot of changes in the rate of unemployment.

In the wake of AI’s potential, there have been plenty of major tech companies announcing layoffs, including cybersecurity powerhouse CrowdStrike and Microsoft. However, while businesses should anticipate and prepare for changes in the workforce, a sense of urgency is not necessarily the right anecdote, based on the mixed findings of AI’s current workplace potential.

‘Pretty Terrible Decade’ In Store As AI Automates White-Collar Jobs, Says Anthropic Researchers

Researchers Sholto Douglas and Trenton Bricken, both at AI startup Anthropic, have hypothesized that AI could soon automate all white-collar jobs, provided companies have “the right kinds of data”. Speaking with podcaster Dwarkesh Patel, Douglas predicted a “drop in white-collar workers” over the next two to five years as a result of the technology, even if current AI progress slows down.

Bricken agreed with his colleague, and confirmed the five-year timeline. The prediction comes as many workers and businesses anticipate being affected by AI, particularly as developments continue to move at a rapid pace.

Anthropic has recently rolled out its newest generation of AI-models, Claude Opus 4 and Claude Sonnet 4. Similarly, last month, the company also announced new integrations and a new web search tool for Claude.

Anthropic CEO Echoes Warning of White-Collar Automation and Calls For Action

Echoing his researchers, Anthropic CEO Dario Amodei told Axios last month that AI has the potential to wipe out half of all white-collar jobs, rising the unemployment rate to 10-20% in the next five years. These roles include those within technology and finance, and will particularly affect entry-level roles within the industry.

Significantly, Amodei claimed that AI companies and the US government were “sugar-coating” the potential affects of AI and automation on unemployment, and has called for more transparency on the subject from these institutions. Ironically, Amodei claims he wants to protect and prepare the nation from the technology he is rapidly advancing, and predicts could change society overnight.

“Cancer is cured, the economy grows at 10% a year, the budget is balanced – and 20% of people don’t have jobs.” Possible AI-related scenario from Anthropic CEO Dario Amodei

Amodei’s public appearances as of late have come with similar messages of AI-related doom and calls to action. Last month, speaking to CNN, the CEO expressed the same threat to entry level white-collar roles.

Nvidia’s Jensen Huang has also said that every job is expected to be impacted by AI, however, that workers are more likely to be replaced by AI-proficient colleagues, rather than automation.

Should US Businesses Anticipate an Overnight AI-Fueled Worker Shift?

Anthropic is one of the world’s most powerful creators of AI, and it must be said that these kind of comments and warnings come with their own set of benefits. Upscaling the potential of Anthropic’s product line by warning about how powerful it could be, may make people more likely to invest in the new tech. As an aside, Axios revealed in their interview with Amodei that he’d preached his warnings just after spending the day boasting about Claude’s new capabilities.

That doesn’t necessarily mean that Amodei’s claims, or those of his researchers, are completely wrong. AI is being used in the workplace, and recent studies have also shown that it is shrinking entry-level tech jobs.

However, there have also been instances of workplace AI not living up to the fear in its name. A previous study deemed a company consisting entirely of AI agents as a failure, and another study showed that AI could even be creating more work for employees. Swedish fintech company Klarna also recently reversed an AI overhaul of its customer services, due to reports of poor quality and dissatisfied customers.

Meta is making sure it can handle the energy requirements of AI: The social media giant is signing a deal with a nuclear power plant in Illinois.

It’s no secret that modern innovations in AI have put a serious strain on energy infrastructure around the world. The technology uses quite a bit of power and amount of the water needed to cool data systems is nothing if not problematic.

That’s why Meta is planning for the future by inking a deal with a nuclear plant that could help power its AI aspirations over the next two decades.

Meta Signs Deal for Nuclear Power Plant

Announced on Tuesday, Meta has signed a deal with Constellation Energy that secures the company rights to a nuclear power plant in Illinois. The deal will be in place for 20 years, starting in June 2027.

The plant was supposed to close in 2017 due to consistent losses at the company, but it was saved by a zero-emission credit program in Illinois, which is set to expire in, you guessed it, June 2027.

The financial specifics of the deal were not disclosed, but they stated that the move would expand energy output from the plant by 30 megawatts, as well as preserve 1,100 local jobs and net $13.5 million in annual tax revenue.

Why Did Meta Buy a Nuclear Power Plant?

Meta didn’t mince words when providing an explanation for why the company just signed a deal to gain access to a nuclear power plant.

“Securing clean, reliable energy is necessary to continue advancing our AI ambitions.” – Urvi Parekh, head of global energy at Meta

That one wasn’t hard to guess. AI has some serious energy requirements that are going to need alternative solutions in the coming years. In fact, some estimates say that AI will require quadruple the energy output by 2030, so it’s safe to say nuclear power plants will have to get on board.

Big Tech Is Going Nuclear

Meta isn’t the first tech company to get on the nuclear bandwagon in an attempt to make powering AI a bit easier. In fact, the big four tech companies have all signed deals to go nuclear in the last few months.

In October 2024, Google signed a deal with Kairos Energy to power 500MW of energy by 2035. That same month, Amazon signed three separate deals to advance its nuclear energy arsenal.

“Nuclear is a safe source of carbon-free energy that can help power our operations and meet the growing demands of our customers, while helping us progress toward our Climate Pledge commitment to be net-zero carbon across our operations by 2040.” – Matt Garman, CEO of Amazon Web Services (AWS).

Given the energy demands of AI, it’s good to see that the tech industry is at least wary of burning through fossil fuels indefinitely to keep it going. Still, let’s hope they take these nuclear deals more seriously than the AI they’re using it to advance.

A new report has found that US business logistics costs add up to approximately 8.8% of the national gross domestic product (GDP).

The logistics industry has been through a lot over the last few years. From rampant inflation to the complex and ever-changing tariff situation, there is no shortage of problems facing the supply chain in 2025.

The best way to stay ahead is to stay informed on how the industry is progressing, and according to this new report, it’s not by much.

US Business Logistics Costs Stay the Same

According to the State of Logistics Report from the Council of Supply Chain Management Professionals (CSCMP), the US business logistics costs reached $2.58 trillion in 2025, which accounts for approximately 3% of the national GSP in the US.

This represents a near-zero percent change from 2024, with last year’s totaling $2.45 trillion, signaling a bit of stagnation when it comes to growth in that time.

The report also noted that global online retail sales are at nearly $6.3 trillion, showing promise for an eventual return to pre-pandemic numbers in the logistics business.

What Is the Current State of Logistics?

The report shows that the logistics industry has been struggling in some major ways, including “increased transit times, capacity constraints, rate volatility in ocean freight (leading to longer home package delivery times and delays), and a greater reliance from third-party logistics providers to deliver end-to-end support,” according to a press release.

“In a world defined by disruption, resilience is what ensures continuity, enabling agility and long-term durability. And as AI and automation drive down the cost of building resilient supply chains, the greater risk now lies in standing still.” – Korhan Acar, Kearney partner and lead author for the State of Logistics Report

Evolving technology and rising costs alone are enough to cause issues, and being resilient will prove to be the best way for logistics businesses to weather the storm.

Logistics Technology to Improve Your Business

If you want to be resilient, the report notes that investment in technology will be absolutely vital. AI, automation, robotics, and data analytics will be key for businesses that hope to make it out of another possible recession.

Luckily, all that doesn’t have to be too complicated. Advanced systems like fleet management software and basic tools like truck parking apps can go a long way in making the changes you need to stay competitive.

Plus, you’ve already found your way to Tech.co, which can help you stay up to date on all the logistics news that could impact your business in the long run. And there’s always the Inside Lane newsletter to get regular updates on the industry.

Microsoft isn’t done with the layoffs just yet, announcing this week that more than 300 employees in its Washington offices are also being made redundant.

Tech layoffs have become a bit too common in recent years, with advancements in AI and economic uncertainty encouraging decision makers to trim the fat at their respective businesses.

Microsoft is just one of the companies subscribing to this mentality, laying off a sizable number of employees over the last month.

Microsoft Announces Additional Layoffs in Washington

Microsoft announced this week that it would be laying off 305 employees from its Washington office. The company informed employees on Monday that their roles were no longer needed, according to data from Washington state.

While 305 employees certainly isn’t groundbreaking, it does add to growing total of layoffs for Microsoft this month. Just a few weeks ago, the company laid off approximately 3% of its workforce — about 6,000 employees — across its entire business.

Why Is Microsoft Laying Off Employees?

Microsoft isn’t the only tech company that has been laying off employees left and right over the last few years. The reasoning has ranged from “improving manager-employee ratio” to “streamlining operations,” and Microsoft is no different.

“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.” – a Microsoft spokesperson

Still, it’s hard not to see the writing on the wall, with companies like Microsoft spending billions upon billions of dollars on AI that is — not to mince words — designed to replace human employees.

The Tech Layoff Trend

Given the economic tumult of the Trump presidency and the evolution of AI over the last few years, it’s safe to say that tech layoffs aren’t going anywhere any time soon.

In 2025, big tech has already accounted for more than 60,000 job losses, according to data from layoffs.fyi, with companies like Google, Meta, and Amazon culling employees on a troublingly consistent basis.

To make matters worse, available entry level positions continue to drop, with data from LinkedIn showing that entry level options are harder and harder to find than in previous years.

All that to say, this isn’t the first layoff announcement from a big tech firm like Microsoft, and we can guarantee that it won’t be the last.

Samsung is closing in on an extensive partnership with AI startup, Perplexity. As revealed by Bloomberg, Samsung is set to invest in Perplexity and integrate its technology into the tech giant’s devices. It’s thought that the announcement might happen as early as this year.

According to the Bloomberg report, the two companies plan to put pen to paper on a deal that would see Perplexity’s app and assistant preloaded onto future Samsung devices, as well as integrating the startup’s AI search functionality into the South Korean company’s web browser. It’s also expected that Samsung will invest heavily in Perplexity, with the AI firm hoping to raise $500 million at a $14 billion valuation.

From Apple partnering with ChatGPT to xAI teaming up with Telegram, companies across the tech sector are tapping AI businesses for potentially revolutionary new partnerships.

Samsung to Announce Deal with AI Startup Perplexity

Samsung is nearing a wide-reaching deal with Perplexity, the startup behind the eponymous AI chatbot, according to a report by Bloomberg. As per the agreement, the tech giant will significantly invest in Perplexity, while preloading its app and assistant onto future Samsung devices. It’s also expected that the startup’s search functionality will be integrated into the Samsung web browser.

The announcement is expected to land before the end of the year, with the imminent Galaxy S26 range touted as the first models to include the Perplexity assistant. That phone line is slated to arrive in the first half of 2026.

According to a source familiar with the matter, the firms have also discussed combining Perplexity’s AI technology with Bixby, Samsung’s virtual assistant. The two companies began conversations in April this year, which came to a head in recent weeks, with representatives for both businesses meeting in South Korea.

Perplexity Goes From Strength to Strength

Reportedly, the companies are considering building an “AI-infused operating system,” as well as a comprehensive “AI agents” app, which would tap into functionality from Perplexity and other AI assistants. It’s not known at this point which other assistants would be involved.

What is more clear is that Perplexity’s star is rising. The startup also has interest from Apple, which is exploring alternatives to Google Search as the Google antitrust trial continues to unfold. Recently, the search engine giant claimed that the case was harming AI progress in the US.

The startup also recently launched Perplexity Labs, a project automation service that can be used to generate basic apps and digital assets on demand. Essentially, it provides the building blocks for developing future AI agents.

Big Tech Bets Big on AI

The tech sector continues its preoccupation with AI. Recently, xAI and Telegram announced a new partnership that will see its Grok chatbot deployed in the messaging app, with the Pavel Durov-helmed company to receive a guaranteed $300 million in cash and shares, as well as 50% of any future revenue from X subscriptions made through Telegram.

Meanwhile, ChatGPT boss Sam Altman has teamed up with Sir Jony Ive, the designer of the iPhone, to deliver the “coolest piece of technology that the world will have ever seen,” while Apple have tapped Perplexity as a potential alternative to ChatGPT.

In a relatively short timeframe, AI has become the most critical battleground for tech businesses everywhere. With so much progress made since ChatGPT’s emergence in late 2022, it will be fascinating to see what the next epoch of this saga looks like.

Millions of Linux users around the world are vulnerable to password theft due to two critical local information-disclosure vulnerabilities. The Qualys Threat Research Unit (TRU) unearthed the vulnerabilities, which target core dump handlers on major Linux distributions.

The two vulnerabilities exploit race conditions that allow hackers to gain access to resulting core dumps. From there, they can target the “unix_chkpwd” process, a standard password verification component that can be found on most Linux systems. If exploited, this opens up companies around the world to wide-reaching data breaches.

The organizational impacts could be devastating, with massive breaches often signaling the death knell for a lot of companies. The discovery underscores the vital importance good cybersecurity practices – and highlights that we’re currently fighting a losing battle.

Millions of Linux User Passwords At Risk

Linux users around the world should brace for password theft, according to new findings from Qualys. The company has unveiled two critical vulnerabilities in global Linux systems, which potentially open the door for attackers to extract sensitive password data through core dump manipulation.

The IT security specialists recently disclosed two vulnerabilities that target core dump handlers on major Linux distributors. These vulnerabilities can be exploited by hackers, resulting in core dumps being compromised.

With this access, attackers can target the unix_chkpwd process, which is used to extract password hashes on most Linux systems. This would expose millions of user passwords around the world, opening businesses that use Linux operating systems up to ransomware attacks – and the grave consequences that come with them.

Vulnerabilities Target Information-Rich Core Dumps

Essentially, a core dump is a file containing a snapshot of a process’ memory when that process crashes. It’s used by developers to better understand what caused the crash, and to mitigate against it happening again. However, because core dumps often store sensitive information, they’re also a tantalizing prospect for would-be cybercriminals.

Core dumps normally have security mechanisms in place to prevent hackers from accessing them. However, the Linux vulnerabilities in question circumvent these protocols, meaning vital user data, including passwords, encryption keys, and even customer data, are totally unprotected.

Affected systems include Ubuntu 24.04 and every Ubuntu release from 16.04 onwards. Similarly, Fedora 40/41 and Red Hat Enterprise Linux 9 and 10 could be subject to exposure. Debian systems are exempt from the threat, as they don’t have core dump handlers.

Findings Point to Wider Cybersecurity Failings

The impact of these vulnerabilities could be catastrophic for businesses around the world. If exploited, hackers could gain access to millions of users’ sensitive information. With this information at their fingertips, they can hold businesses to ransom for high sums. The impacts, however, extend far beyond the financial.

Often, companies that are subject to high-profile data breaches suffer significant reputational damage. Customers lose their faith in that institution as a custodian of their personal information and take their business elsewhere. The effects can be terminal.

With such severe consequences, you would assume that companies around the world are taking their cybersecurity seriously. Shockingly, recent research indicates that that is not necessarily the case, with most businesses deserting even their most basic duties.

If the business world is to get to grips with this escalating problem, firms need to invest more time and resources into upskilling their existing employees and exploring emerging defense technologies. While it’s still in its relative infancy, AI poses a potential solution to some of the problems that we’re currently experiencing.

The job replacement debate over AI rages on, as entrepreneur Mark Cuban weighs in, stating that the technology is poised to create more companies and more jobs than it erases.

Modern iterations of AI aren’t the first technology to create stress over employment. In fact, automation has long been a threat to the career market, with innovations essentially designed to take over human jobs.

This is especially true for generative AI, though, with the technology evolving at break-neck speeds with minimal regulations, which could lead to some serious questions in the near future.

Cuban: AI Will ‘Increase Total Employment’

In a post on Bluesky, Mark Cuban gave his two cents on the AI-job replacement debate, stating that the technology is poised to improve the overall job market, rather than hamper it in the long run.

“New companies with new jobs will come from AI and increase TOTAL employment.” – Mark Cuban

Cuban made this point after noting that the job market used to be flush secretary positions, but that the evolution of scheduling technology and other automation didn’t cripple the economy, as is being predicted with AI.

Mark Cuban’s History on AI

Unlike many of the CEOs and business owners in the tech industry that have been flip-flopping and pivoting on their AI strategy, Mark Cuban has been quite consistent when it comes to his opinion on the technology.

In fact, because Cuban is so outspoken on social media, there is a huge body of content that points to his belief that AI is not only the future of the business world, but that it will actually improve the economy for everyone, including adding new jobs to the market.

“Generative AI will be the greatest growth and productivity engine, ever. We will see amazing new shit that replaces the old shit, but will cost more and we will bust ass to get it.” – Mark Cuban on X

Cuban’s optimism is certainly refreshing, especially given the fact that the rest of the tech industry has been pretty clear that hiring is very much on the way down.

Is AI Going to Create More Jobs?

AI in its current form is very much in its infancy, so it’s hard to say whether or not Cuban’s prediction will come true. As for the current situation, most research shows that jobs are, in fact, becoming more and more sparse as AI rolls out.

This week, Salesforce announced that AI was reducing engineering and customer service jobs. A recent study found that notably fewer entry level jobs are available on LinkedIn. The CEO of Foxconn admitted that AI is likely going to eliminate manufacturing jobs. And that’s just this week.

Still, as Cuban points out, he’s talking about the long term. Salesforce actually clarified and said that they plan to hire more salespeople as a result of the additional funds available from dialing back others.

Suffice to say, the evolution of AI is going to have a substantial impact on the economy. Whether it be positive or negative remains to be seen, but let’s hope that Cuban is right, for the sake of everyday people.

Software company Salesforce has said that development of AI tools is reducing its need to hire engineers and customer service workers.

Since AI has been developing at such a rapid pace, businesses have been rushing to implement it, sometimes not always for the right reasons. However, this has not always led to strong results.

Microsoft CEO Satya Nadella has said that companies should be looking at whether AI is producing value, rather than mindlessly running after it. This comes as a result of mixed results surrounding whether AI and its ability to actually make an impact on workers.

Salesforce Admits Reduction in Hiring As a Result of AI Developments

Salesforce has said that the use and development of AI tools within its company has contributed to hiring less workers. In particular, those in engineering or customer services.

The company laid off over 1,000 workers back in February to make way for AI-focused roles. Instead, Chief Financial Operations Officer Robin Washington said that 500 customer service workers would be redeployed to different roles within the company this year, in total saving them $50 million.

Likewise, the company now expects its roster of 13,000 salespeople to increase by 22% this year. This suggests slowing in hiring for some roles, but an increase in others.

Changes In Hiring Patterns Thanks To AI

In our Impact of Technology on the Workplace report, only 15% of businesses claimed to have never used AI before, compared to 34% the previous year. There have been reports of hiring patterns changing as a result.

Leaders of Alphabet and Microsoft have said that AI is producing about 30% of new code on some projects, and Meta has announced that it will be relying on a class of AI-powered engineers to carry out basic bug fixes and product improvements.

Most recently, Klarna looked to have its AI assistant doing the work of around 700 employees. However, this was previously taken back, as reports of poor customer support and dissatisfaction emerged. Since then, the company has announced its intentions to provide better, “human” support.

AI Is Generating Little Value, Admits Microsoft CEO

A few months ago, Microsoft CEO Satya Nadella said that companies should look to see if AI has any real-world value, rather than just running to keep up with the new tech.

“Suddenly productivity goes up and the economy is growing at a faster rate. When that happens, we’ll be fine as an industry.” – Satya Nadella, Microsoft CEO

We are yet to see AI have as much of an impact as Nadella is describing. In fact, there have even been reports of AI stunting productivity by giving workers more tasks, but there have also been other reports on the opposite end of the spectrum.

With companies investing a lot of money (billions, in the case of Microsoft) in AI, it is understandable that results have to be tangible.

A US federal court has blocked many of President Trump’s new tariffs. The court has issued an injunction on the executive orders that enacted these tariffs — and a trade war — that will stop any operations related to the tariff orders immediately.

The Court of International Trade has stated that the president has overstepped his powers, as he used the International Emergency Economic Powers Act (IEEPA) to justify his original actions. However, this Act doesn’t necessarily state that tariffs can be enacted as a result of its imposition.

While the announcement has caused some relief, it’s unlikely that any revoking of the tariffs will fix the damage done to the logistics industry in the past few months. Likewise, experts have warned that there are other ways that the White House can continue with their tariff operation.

US Federal Court Blocks President Trump’s Industry-Changing Tariffs

The US Court of International Trade has blocked most of President Trump’s new tariffs in a sweeping decision on Wednesday.

The Court issued an injunction on four executive orders, which had invoked various national emergencies, to enable tariffs on Canada, China and Mexico — and a 10% global baseline tariff and additional reciprocal tariffs. The injunction calls on the government to stop any tariff-related operations immediately and to issue administrative notices on the injunction within 10 days.

This has come as a result of small businesses and several US states filing petitions to halt the tariffs. When imposing the tariffs, Trump did so via IEEPA. However, these small businesses and US states have claimed putting these tariffs in place through this act oversteps presidential powers.

This caused the court to side with the plaintiffs and block the executive orders that imposed the tariffs as a result.

Lawyers of the Trump administration have already appealed the decision to the US Court of Appeals for the Federal Circuit, and now have 14 days to file additional documents supporting their case.

President Has Overstepped His Authority, Says Court of International Trade

Kush Desai, a spokesperson for the White House, has issued a statement saying: “It is not for unelected judges to decide how to properly address a national emergency.”

Trump originally set out with his tariffs on April 2nd, which saw a baseline 10% tariff on all US imports. He has since announced several more troubling figures, including an eye watering 145% US tax on Chinese imports. Recently, the President has also threatened a 50% tariff from June on all EU goods.

Trump is not the first US president to enact emergency tariffs. Richard Nixon did the same thing in 1971, imposing a 10% global tariff to address a national emergency related to the US economic position. While Trump has also invoked a national emergency — immigration crises, fentanyl trafficking, and disproportionate trade relationships — the law Nixon used is now represented by the IEEPA.

Where Trump has been caught out is in his imposition under this Act, which states a president may “regulate” international economic transactions, but doesn’t explicitly state tariffs can be imposed.

What Could Tariff Ruling Mean for the Logistics Industry?

In recent months, the news on tariffs hasn’t seemed to be going in any positive direction, despite a 90-day pause on tariffs earlier this month. This new development will contribute to the sense of uncertainty in regard to international trading, and will throw ongoing trade talks between the US and other countries into further unpredictability.

If the ruling is upheld, businesses who have had to pay tariffs will receive refunds on the amounts paid, including on any reciprocal tariffs, with interest included. While this may be a good shift for some, a lot of the damage has already been done, particularly for those in logistics.

Up-and-down freight volumes at ports could have already damaged the trucking industry, and The American Trucking Association has warned that tariffs could inflate the price of a new truck by $35,000.

Experts have pointed out that there are other avenues that Trump could use to impose his tariffs, also. Analyst Alec Phillips has stated that while the ruling represents a setback for the Trump administration, it “might not change the final outcome for most major US trading partners.”

Elon Musk’s xAI will pay Telegram $300 million to deploy its Grok chatbot on the platform, as revealed by Telegram founder Pavel Durov in a post on X on Wednesday.

According to Durov, the two companies put pen to paper on a one-year contract that will put Grok in front of the more than one billion Telegram users around the world. In addition, the company behind the messaging app will also be entitled to half of any subscription sales made through the app.

By opening up access to valuable data that could be used to train its models, the partnership gives xAI and Musk a boost in the ongoing AI race. With the US facing stern competition from China, notably the likes of DeepSeek and Manus AI, the news will be warmly welcomed by President Trump, who is determined to compete with the Eastern superpower.

xAI and Telegram Strike Up Grok Partnership

Elon Musk’s xAI startup has been handed a boost in the unfolding AI race. The company on Wednesday announced a one-year partnership with Telegram that will see its Grok chatbot deployed on the messaging platform, whose users exceed one billion.

Writing on X, Telegram founder Pavel Durov said: “This summer…users will gain access to the best AI technology on the market.” He went on to claim that “this also strengthens Telegram’s financial position,” with half of the revenue from xAI subscriptions sold via Telegram promised to the company.

Telegram exceeded one billion users in 2025, with the company also due to net $1.5 billion in a bond issue, according to reporting in the Wall Street Journal, as its goes from strength to strength. However, Durov is currently under investigation in France, where he resides, facing allegations of allowing criminal activity on the app.

Benefits Potentially Huge for Both Parties

From xAI’s point of view, the move could secure valuable data to train and develop its AI models. While the company did not respond to requests for comment, X trains models on public posts from its users, according to its privacy policy. It’s expected that the company will use Telegram data for the same purpose.

AI companies are currently facing a shortage of open-source repositories for training their models. This has prompted various firms to train their models on public interactions. In April 2025, Meta announced that it would be training its AI models on “the interactions that people have with AI at Meta, as well as public content shared by adults on Meta Products.”

At the same time, the benefits for Telegram are a little more obvious – a guaranteed $300 million in cash and shares, and a significant portion of any potential revenue that xAI makes by tapping into Telegram’s one billion+ user base.

xAI To Blow Competition Out of the Water?

Musk and xAI will hope that the vast amounts of data they’re getting access to – if this is indeed their objective – will hand them a massive boost in the AI race. As our own research indicates, ChatGPT remains the chatbot of choice for most tech businesses in the US that are using AI.

Meanwhile, in its race for global supremacy, the US is facing serious competition from China. In recent months, a series of Chinese innovations has disrupted the AI market, with examples including DeepSeek, Baidu, and Manus AI.

With his resolute determination to ward off the threat from the East, President Trump will hope that Musk’s partnership with Telegram can lay down a marker on the world stage. Musk will hope that it gives him the upper hand over his contemporaries.