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Produce At Whole Foods Market's Flagship Store
Shoppers in the produce section at a Whole Foods in Texas (John Anderson/Getty Images)

Amazon says it’s doubling down on opening Whole Foods stores. That sounds familiar.

The company says it’ll open 100 Whole Foods locations in the next few years. That sounds similar to plans Whole Foods’ CEO laid out in 2024 for opening 30 stores a year. Since then, it appears to have added 14, total.

Amazon put out a press release today saying it’s doubling down on physical retail, announcing plans to open more than 100 Whole Foods Market stores over the next few years.

That sounds like a lot. But it also sounds familiar.

Amazon and Whole Foods have been talking up aggressive expansion plans for years, without much to show for it. In May 2024, then Whole Foods CEO Jason Buechel said the grocer aimed to open more than 30 stores per year, with 75 locations already in the development pipeline.

Yet the store count tells a much slower story. According to Wayback Machine archives of Whole Foods’ “About” page, the company had 514 US stores, 14 in Canada, and seven in the UK as of June 2023. Nearly two years later, that page lists 531 US stores, 12 in Canada, and six in the UK — a net increase of just 14 stores worldwide, or roughly seven per year. That total includes closures, meaning Whole Foods may have opened more locations than that but shuttered others along the way.

Amazon didn’t respond to specific questions about what happened to the earlier rollout. Instead, it pointed back to language from Tuesday’s press release.

“While we’ve seen encouraging signals in our Amazon-branded physical grocery stores, we haven’t yet created a truly distinctive customer experience with the right economic model needed for large-scale expansion,” the company wrote, explaining its decision to close the remaining Amazon Go and Amazon Fresh stores — some of which will be converted into Whole Foods locations.

Still, Tuesday’s announcement underscores Amazon’s growing focus on groceries, which it increasingly sees as a hybrid business spanning same-day delivery and physical stores. A larger store footprint would support that delivery push. And Amazon customers still shop for groceries at stores in person, after all, while the vast majority of retail sales continue to happen offline.

In December, Amazon said it offered same-day grocery delivery in 2,300 US cities and was planning to expand to more locations in 2026. Just last week, the company won approval to open a massive hybrid big-box grocery store and fulfillment center outside Chicago.

Whether Amazon’s latest pledge marks a real shift will become clear only if its store count starts rising much more quickly than it has been.

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Google will supply AI models to Pentagon in classified deal, per The Information

Google has become the latest tech company to ink an agreement to supply the Department of Defense (War) with AI, having reportedly closed a classified deal that allows the Pentagon to use its AI for “any lawful government purpose,” according to The Information.

The Information initially reported talks between the Alphabet-owned company and the US government around two weeks ago, following the messy breakdown of the relationship between Anthropic and the Trump administration — and the rushed OpenAI deal that took its place.

The move has reportedly sparked opposition among Google employees, with the Washington Post reporting that over 600 workers signed a letter to CEO Sundar Pichai to ask him to bar the Defense Department from using the company’s AI models for any classified work.

The Information initially reported talks between the Alphabet-owned company and the US government around two weeks ago, following the messy breakdown of the relationship between Anthropic and the Trump administration — and the rushed OpenAI deal that took its place.

The move has reportedly sparked opposition among Google employees, with the Washington Post reporting that over 600 workers signed a letter to CEO Sundar Pichai to ask him to bar the Defense Department from using the company’s AI models for any classified work.

tech

Microsoft loses exclusive access to OpenAI’s models and tools while ending revenue-sharing deal with ChatGPT maker

Microsoft shares dropped as it announced a revised agreement with OpenAI.

The amended agreement ends revenue-sharing payments from Microsoft to OpenAI, and also ends Microsoft’s exclusive access to OpenAI’s intellectual property (i.e. models and products).

OpenAI’s revenue sharing with Microsoft will end in 2030, is subject to a total cap, and is no longer dependent on its achieving artificial general intelligence.

Amazon, a likely beneficiary of this lack of exclusivity, initially popped on the news but erased those gains.

This is a developing story.

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Rani Molla

China just blew up one of Meta’s key AI bets

China has ordered Meta to unwind its $2 billion acquisition of Manus, a Chinese startup (since relocated to Singapore) that makes AI agents and was central to Meta’s push to turn its massive AI investments into a real business. The move is part of the Chinese government’s effort to stop US firms from gaining access to Chinese talent and intellectual property, as Washington continues to restrict sales of advanced AI chips to Chinese companies.

Unlike its tech peers, which can sell AI through cloud services, Meta mainly uses AI to improve its existing ad business rather than as a stand-alone revenue driver. The decision strips away one of Meta’s clearest paths to monetizing AI — leaving it spending like a hyperscaler, without a hyperscaler business model.

Unlike its tech peers, which can sell AI through cloud services, Meta mainly uses AI to improve its existing ad business rather than as a stand-alone revenue driver. The decision strips away one of Meta’s clearest paths to monetizing AI — leaving it spending like a hyperscaler, without a hyperscaler business model.

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