Looking for a dose of festive cheer this holiday season? 

You might just find it in an unexpected corner of Seattle, where the spirits of the tech past linger. 

The former headquarters of PayScale, the compensation data company that once called the historic Palmer Building in SoDo home, has been completely transformed into a winter wonderland that includes a family-friendly daytime experience called Kringle’s Inventionasium and an adults-only evening Elf Bar pop-up.

It’s an unusual metamorphosis of a fancy high-tech office space, one that received recognition at the 2017 GeekWire Awards as one of the region’s Geekiest Office Spaces. But time moves on, and so has PayScale.

The 22-year-old software company — which in 2019 was valued at $325 million after a private equity infusion — moved its headquarters to Boston in March. The Puget Sound Business Journal reported the news earlier this week.

Now, where software geeks once wrote code and executives debated corporate strategy, elves and Santa’s reign. 

It’s all the magical dream of LIT Immersive founders Jason DeLeo and Jen Matthews, two theater geeks with a flair for immersive experiences. They took control of a portion of the former PayScale space about 18 months ago, and since then have created a wide array of themed experiences across the 18,000 square feet of space directly west of Lumen Field. 

The transformation from corporate office to immersive playground was made possible by the fact that the tech company had virtually abandoned the space, leaving most of the infrastructure — not to mention TVs, power cords and other gear — intact. 

“Almost everything is still here from (PayScale),” DeLeo said. “The microwaves are still the microwaves that they used. Their dishwashers. They had a kegerator, we have the kegerator … it’s all here.”

This allowed DeLeo and Matthews to save hundreds of thousands of dollars on the buildout of the space. The former PayScale sports bar — a highlight of the former office space — was easily repurposed (which DeLeo and Matthews happily open on game days for fans of the Seahawks and Mariners). The second floor break rooms are now used as a green room for the actors who perform in the various shows. 

“We knew that PayScale was here, and that’s what turned us onto the space because it was fully networked,” said DeLeo. 

The Elf Bar concept was also a stroke of luck. DeLeo and Matthews had already been cooking up a holiday-themed cocktail bar concept called Elf’d Up this year, when they were approached with a licensing deal from the creators of Elf Bar. Pop-up holiday-themed cocktail bars started gaining momentum about a decade ago, with organizations like Miracle now operating dozens of locations internationally, including four spots in Washington state. 

Beyond its festive cocktails, Elf Bar offers a host of activities for 21+ crowd: holiday-themed trivia; karaoke lounge; a snowball fight club; and games. Reservations for three evening time slots are available, and tickets range from $15.50 to $18.50. The Elf Bar is open through Dec. 21, though DeLeo said they may extend the pop-up based on demand. 

The day-time, kid-friendly Kringle’s Inventionasium — inspired by a long-running show in Cleveland, Ohio — has been a hit with families and school groups. Cost of that experience ranges from $24 to $63 per guest, with the daytime shows running through December 24.

Next up for DeLeo and Matthews? With the FIFA World Cup coming to Seattle next summer — including six matches across the street at Lumen Field — they are already planning for the next immersive experience or ways to rent the space to a team, corporate sponsor or broadcast company. 

DeLeo said they are “praying” that Seattle gets some big-name teams during the World Cup draw today. Their holiday wish may have come true, with the U.S. Men’s National Team slated to play Australia — known as the “socceroos” — on Friday, June 19 at Lumen Field.

Microsoft’s annual shareholder meeting Friday played out as if on a split screen: executives describing a future where AI cures diseases and secures networks, and shareholder proposals warning of algorithmic bias, political censorship, and complicity in geopolitical conflict.

One shareholder, William Flaig, founder and CEO of Ridgeline Research, quoted two authorities on the topic — George Orwell’s 1984 and Microsoft’s Copilot AI chatbot — in requesting a report on the risks of AI censorship of religious and political speech.

Flaig invoked Orwell’s dystopian vision of surveillance and thought control, citing the Ministry of Truth that “rewrites history and floods society with propaganda.” He then turned to Copilot, which responded to his query about an AI-driven future by noting that “the risk lies not in AI itself, but in how it’s deployed.”

In a Q&A session during the virtual meeting, Microsoft CEO Satya Nadella said the company is “putting the person and the human at the center” of its AI development, with technology that users “can delegate to, they can steer, they can control.”

Nadella said Microsoft has moved beyond abstract principles to “everyday engineering practice,” with safeguards for fairness, transparency, security, and privacy.

Brad Smith, Microsoft’s vice chair and president, said broader societal decisions, like what age kids should use AI in schools, won’t be made by tech companies. He cited ongoing debates about smartphones in schools nearly 20 years after the iPhone.

“I think quite rightly, people have learned from that experience,” Smith said, drawing a parallel to the rise of AI. “Let’s have these conversations now.”

Microsoft’s board recommended that shareholders vote against all six outside proposals, which covered issues including AI censorship, data privacy, human rights, and climate. Final vote tallies have yet to be released as of publication time, but Microsoft said shareholders turned down all six, based on early voting. 

While the shareholder proposals focused on AI risks, much of the executive commentary focused on the long-term business opportunity. 

Nadella described building a “planet-scale cloud and AI factory” and said Microsoft is taking a “full stack approach,” from infrastructure to AI agents to applications, to capitalize on what he called “a generational moment in technology.”

Microsoft CFO Amy Hood highlighted record results for fiscal year 2025 — more than $281 billion in revenue and $128 billion in operating income — and pointed to roughly $400 billion in committed contracts as validation of the company’s AI investments.

Hood also addressed pre-submitted shareholder questions about the company’s AI spending, pushing back on concerns about a potential bubble. 

“This is demand-driven spending,” she said, noting that margins are stronger at this stage of the AI transition than at a comparable point in Microsoft’s cloud buildout. “Every time we think we’re getting close to meeting demand, demand increases again.”

LAS VEGAS — Our toaster has arrived.

Amazon’s Zoox robotaxi service launched in Las Vegas this fall, and a few members of the hard-working GeekWire Studios crew joined me to try it out for a ride to dinner after a long day at AWS re:Invent. Zoox was nothing short of a hit with our group.

The consensus: it was a smooth, futuristic shuttle ride that felt safe amid the Las Vegas chaos, with per-seat climate control, and customizable music. (Somehow we landed on Cher, but in this vehicle, we felt no need to turn back time.) Most of all, the face-to-face seating made for a fun group experience, rather than a retrofitted car like Waymo. 

Zoox, founded in 2014, was acquired by Amazon in 2020 for just over $1 billion, marking the tech giant’s move into autonomous vehicle technology and urban mobility. Zoox operates as an independent subsidiary, based in Foster City, Calif.​​

Unlike competitors that retrofit vehicles, Zoox designed its robotaxi from scratch. It’s a compact, 12-foot-long electric pod, bidirectional, without steering wheel or pedals.

The experience of calling the Zoox vehicle on the app was seamless and quick. The doors opened via a button in the app after the carriage arrived to pick us up at a designated station between Fashion Show Mall and Trump International Hotel. 

Inside, our nighttime ride featured a starfield display on the interior ceiling of the cab, adding to the magical feel, with functional seats comfortable enough for a drive across the city.

A few of us had experienced Waymo in California, so it was natural to make the comparison. One thing I missed was the live virtual road view that Waymo provides, representing surrounding vehicles and roadways, which provides some reassurance.

Emergency human assistance also seemed more accessible in the Waymo vehicles than in the Zoox carriage. And unlike the Waymo Jaguar cars that I’ve taken in San Francisco, the build quality of the Zoox vehicle felt more utilitarian than luxury.

For this current phase of the Vegas rollout, one major downside is the limited service area — just seven fixed spots along the Las Vegas strip, like Resorts World, Luxor, and AREA15, requiring walks between hubs rather than seamless point-to-point hails. It’s more of a novelty for that reason, rather than a reliable form of transportation.

But hey, the rides are free for now, so it’s hard to complain.

And the ability to sit across from each other more than made up for any minor quibbles. (Our group of five split up and took two four-person carriages from Fashion Show Mall to Resorts World.) Compared to the Waymo experience, the Zoox vehicle feels less like sitting in a car and more like sharing a moving living room.

GeekWire Studios host Steph Stricklen was initially skeptical — wondering if Vegas would be the right place for an autonomous vehicle, given the chaotic backdrop and unpredictable traffic patterns on the Strip. But she walked away a believer, giving the ride a “10 out of 10” and saying she never felt unsafe as a passenger. 

“It felt very Disneyland,” said GeekWire Studios host Brian Westbrook, citing the creature comforts such as climate control that seemed to be isolated to each seat. Along with music and other controls, that’s one of the features that can be accessed via small touch-screen displays for each passenger on the interior panel of the vehicle.

GeekWire project manager Jessica Reeves said she almost forgot that there wasn’t a human driving. Despite rapid acceleration at times, the ride was smooth.

“It didn’t feel like I was riding in an autonomous vehicle, maybe it was just the buzz of experiencing this new way of transportation,” Jessica messaged me afterward, reflecting on the experience. “The spaciousness, facing my friends, exploring the different features, it all happened so fast that before I knew it, we were there!”

Holly Grambihler, GeekWire’s chief sales and marketing officer, was impressed with the clean interior and comfortable seats.

“It felt less like a vehicle and more like a mobile karaoke studio with the customized climate control and ability to choose your music — Cher in Vegas, perfect!” Holly said. “It felt safe with our short ride. I don’t think I’d take a Zoox on a freeway yet.”

On that point: Zoox’s purpose-built pod is engineered to reach highway speeds of up to about 75 mph, and the company has tested it at those velocities on closed tracks. In Las Vegas, though, the robotaxis currently stick to surface streets at lower speeds, and Zoox hasn’t yet started mixing into freeway traffic.

The Vegas service launch marked Zoox’s first public robotaxi deployment, offering free rides along a fixed loop on and around the Strip while gathering data for paid trips. Zoox followed with a limited public launch in San Francisco in November.

For Amazon, the technology represents a long-term bet, with the potential to contribute to its logistics operations. It’s not hard to imagine similar vehicles shuttling packages in the future. But for now the focus is on public ridership.

The company has flagged Austin, Miami, Los Angeles, Atlanta, Washington, D.C., and Seattle as longer-term potential markets for the robotaxi service as regulations and technology mature. We’ve contacted Zoox for the latest update on its plans.

If our own ride this week was any indication, the company’s biggest challenge may simply be expanding the robotaxi service fast enough for more people to try it.

Editor’s note: GeekWire Studios is the content production arm of GeekWire, creating sponsored videos, podcasts, and other paid projects for a variety of companies and organizations, separate from GeekWire’s independent news coverage. GeekWire Studios had a booth at re:Invent, recording segments with Amazon partners in partnership with AWS. Learn more about GeekWire Studios.

A newly proposed payroll tax would add new costs for large businesses in Washington state. But Rep. Shaun Scott, a Seattle Democrat sponsoring the bill, argues it would protect the basic services that help companies recruit and retain talent.

“People are looking to the state legislature for leadership on protecting the programs that make our state actually a healthy climate to do business in,” Scott told GeekWire this week.

House Bill 2100, pre-filed this week in Olympia, would create the “Well Washington Fund” and levy a 5% payroll expense tax on “large operating companies” for employee wages above a $125,000 threshold. The bill defines a “large operating company” as one with more than 20 employees and more than $5 million in gross receipts or sales, among other criteria. Employers with total employee wages under $7 million in the prior year would be exempt.

Scott is pitching the bill as a state backstop against federal cuts hitting Medicaid, higher education, housing and other programs. He said it would generate more than $2 billion annually and impact the about 4,300 businesses — including Redmond, Wash.-based tech giant Microsoft and telecom behemoth T-Mobile, headquartered in Bellevue.

Seattle-based companies such as Amazon that already pay the city’s JumpStart payroll tax would be exempt.

Scott said there is a “corollary effect” on corporations from policies that benefit “everyday people.”

“My sense of it is that the public is on our side on this issue,” he said. “They understand that when you have very well-funded higher education, what that means is a well-trained workforce that could seek employment at a place like Microsoft or Amazon — and the company would benefit as a result.”

“When you have people who have very good housing options, that makes Washington that much more of a competitive place to come and do business,” he added.

Business groups are wary of the proposal. Rachel Smith, the new CEO of Washington Roundtable, called it a “tax-first, plan later” idea. She also cited the state’s recent tax increases impacting businesses — passed in part to help address a $16 billion budget shortfall — and broader economic uncertainty.

“If a job is cheaper somewhere else, and a company has an operational environment that allows them to deploy that job somewhere else, of course that’s going to be something they consider,” Smith said in an interview with GeekWire.

Lawmakers tried to pass a similar statewide payroll tax this year, but the bill did not advance. In March, Microsoft President Brad Smith criticized that tax proposal and said it would increase prices for consumers, reduce jobs, and hurt the tech industry.

Microsoft declined to comment on Rep. Scott’s proposal when contacted by GeekWire this week.

Rep. Scott said it’s “disingenuous” that critics raise alarms about companies leaving when the state talks about funding the safety net, but don’t ask similar questions when companies cut jobs on their own. He said the relocation question “does not come up when we see large tech firms investing in artificial intelligence, which is designed to divest from human labor.”

Washington is one of a few states without a personal or corporate income tax. Most state revenue comes from sales, property, and B&O taxes — a system critics say disproportionately burdens lower-income residents.

Gabriella Buono, interim president and CEO at the Seattle Metro Chamber, said that “raising taxes in an affordability crisis will mean higher prices on everyday essentials, fewer job opportunities, and more closures in sectors that are already on the edge.”

“Voters across the political spectrum are clear: they want smart spending, transparency, and results, not new taxes that make it harder to live and work in this state,” Buono said in a statement.

Revenue from the proposed bill would initially go to the state general fund in 2026, then split beginning in 2027, with 51% directed to a dedicated Well Washington fund account and 49% to the general fund. A new oversight and accountability board would guide priorities and report annually. Spending from the account would be limited to higher education, health care — especially Medicaid — cash assistance, and energy and housing programs.

Does everyone in Seattle hate AI?

That’s one of the surprising questions to arise this week in response to a viral blog post penned by Jonathon Ready, a former Microsoft engineer who recently left the tech giant to pursue his own startup.

In the post, Ready describes showing off his AI-powered mapping project, Wanderfugl, to engineers around the world. Everywhere from Tokyo to San Francisco, people are curious. In Seattle, “instant hostility the moment they heard ‘AI,'” he said.

“Bring up AI in a Seattle coffee shop now and people react like you’re advocating asbestos,” he wrote.

The culprit, Ready argues, is the Big Tech AI experience — specifically, Microsoft’s. Based on conversations with former colleagues and his own time at the company, he describes a workplace where AI became the only career-safe territory amid widespread layoffs, and everyone was forced to use Copilot tools that were often worse than doing the work manually.

The result, Ready says, is a kind of learned helplessness: smart people coming to believe that AI is both pointless and beyond their reach.

His post drew hundreds of comments on Hacker News and other responses on LinkedIn. Some felt he hit the nail on the head. Trey Causey, former head of AI ethics at Indeed, said he could relate, recalling that he would avoid volunteering the “AI” part of his job title in conversations with Seattle locals. He speculated the city might be the epicenter of anti-AI sentiment among major U.S. tech hubs.

But others said the piece paints with too broad a brush. Seattle tech vet Marcelo Calbucci argues the divide isn’t geographic but cultural — between burned-out Big Tech employees and energized founders. He pointed to layoffs that doubled workloads even as AI demand increased, creating stress levels beyond simple burnout.

“If you hang out with founders and investors in Seattle, the energy is completely different,” Calbucci wrote.

Seattle venture capitalist Chris DeVore was more dismissive, calling Ready’s post “clickbait-y” and criticizing what he saw as a conflation of the experiences of Big Tech individual contributors with Seattle’s startup ecosystem.

That dovetails with GeekWire’s recent story about “a tale of two Seattles in the age of AI”: a corporate city shell-shocked by massive job cuts, and a startup city brimming with excitement about new tools.

Ryan Brush, a director at Salesforce, put forth an intriguing theory: that any anti-AI sentiment in Seattle can be traced to the city’s “undercurrent of anti-authority thinking that goes way back,” from grunge music to the WTO protests.

“Seattle has a long memory for being skeptical of systems that centralize power and extract from individuals,” Brush commented. “And a lot of what we see with AI today (the scale of data collection, how concentrated it is in a few big companies) might land differently here than it does elsewhere.”

Ready ends his post by concluding that Seattle still has world-class talent — but unlike San Francisco, it has lost the conviction that it can change the world.

In our story earlier this year — Can Seattle own the AI era? — we asked investors and founders to weigh the city’s startup ecosystem potential. Many community leaders shared optimism, in part due to the density of engineering talent that’s crucial to building AI-native companies.

But, as we later reported, Seattle lacks superstar AI startups that are easy to find in the Bay Area — despite being home to hyperscalers such as Microsoft and Amazon, as well as world-class research institutions (University of Washington; Allen Institute for AI) and substantial Silicon Valley outposts.

Is it because Seattle “hates AI”? That seems like a bit of a stretch. But this week’s discussion is certainly another reminder of the evolving interplay between Seattle’s tech corporations, talent, and startup activity in the AI era.

Thoughts on this topic? Continue the discussion on LinkedIn.

Related: Seattle is poised for massive AI innovation impact — but could use more entrepreneurial vibes

LAS VEGAS — Matt Garman remembers sitting in an Amazon leadership meeting six or seven years ago, thinking about the future, when he identified what he considered a looming crisis.

Garman, who has since become the Amazon Web Services CEO, calculated that the company would eventually need to hire a million developers to deliver on its product roadmap. The demand was so great that he considered the shortage of software development engineers (SDEs) the company’s biggest constraint.

With the rise of AI, he no longer thinks that’s the case.

Speaking with Acquired podcast hosts Ben Gilbert and David Rosenthal at the AWS re:Invent conference Thursday afternoon, Garman told the story in response to Gilbert’s closing question about what belief he held firmly in the past that he has since completely reversed.

“Before, we had way more ideas than we could possibly get to,” he said. Now, “because you can deliver things so fast, your constraint is going to be great ideas and great things that you want to go after. And I would never have guessed that 10 years ago.”

He was careful to point out that Amazon still needs great software engineers. But earlier in the conversation, he noted that massive technical projects that once required “dozens, if not hundreds” of people might now be delivered by teams of five or 10, thanks to AI and agents.

Garman was the closing speaker at the two-hour event with the hosts of the hit podcast, following conversations with Netflix Co-CEO Greg Peters, J.P. Morgan Payments Global Co-Head Max Neukirchen, and Perplexity Co-founder and CEO Aravind Srinivas.

A few more highlights from Garman’s comments:

Generative AI, including Bedrock, represents a multi-billion dollar business for Amazon. Asked to quantify how much of AWS is now AI-related, Garman said it’s getting harder to say, as AI becomes embedded in everything. 

Speaking off-the-cuff, he told the Acquired hosts that Bedrock is a multi-billion dollar business. Amazon clarified later that he was referring to the revenue run rate for generative AI overall. That includes Bedrock, which is Amazon’s managed service that offers access to AI models for building apps and services. [This has been updated since publication.]

How AWS thinks about its product strategy. Garman described a multi-layered approach to explain where AWS builds and where it leaves room for partners. At the bottom are core building blocks like compute and storage. AWS will always be there, he said.

In the middle are databases, analytics engines, and AI models, where AWS offers its own products and services alongside partners. At the top are millions of applications, where AWS builds selectively and only when it believes it has differentiated expertise.

Amazon is “particularly bad” at copying competitors. Garman was surprisingly blunt about what Amazon doesn’t do well. “One of the things that Amazon is particularly bad at is being a fast follower,” he said. “When we try to copy someone, we’re just bad at it.” 

The better formula, he said, is to think from first principles about solving a customer problem, only when it believes it has differentiated expertise, not simply to copy existing products.

Fintech startup SecureSave, a 2020 spinout of Seattle’s Pioneer Square Labs, has been acquired by Wisconsin-based HSA Bank.

SecureSave helps employers offer a financial wellness benefit to workers beyond their paycheck in the form of an emergency savings account (ESA). HSA Bank is a division of Webster Bank and Webster Financial Corp. and is one of the nation’s leaders in healthcare savings and spending accounts.

Terms of the deal, completed Thursday, were not disclosed.

SecureSave employs 23 people full time, most of whom are in the Seattle area, and will continue to operate its current platform and serve its clients.

The startup was co-founded by CEO Devin Miller, CTO Bassam Saliba, and TV personality and best-selling author Suze Orman.

Miller previously led Balance Financial, a Seattle-area startup acquired by Blucora’s TaxAct subsidiary in 2013. He later joined Guidant Financial as executive vice president and later president. Saliba is another longtime entrepreneur who sold Avado to WebMD in 2013 and was a board member/acting CTO at Balance Financial alongside Miller.

SecureSave raised about $28 million to date, with venture backing from PSL, Seachange and IA Ventures, and three banks — Truist, Stearns and Webster.

Miller, who is based in Spokane, Wash., said SecureSave has supported more than 60,000 active emergency savings account holders who have saved more than $100 million to date.

Miller said the company had a strong year of growth and that interest in the category can be evidenced by legislation proposed this week in Congress. U.S. Senators Cory Booker (D-NJ) and Todd Young (R-IN) introduced the Emergency Savings Enhancement Act, aimed at helping American workers and families save for unexpected expenses without having to tap into their retirement accounts.

In a post on LinkedIn, Miller wrote about how the HSA deal came together and why it will be “a massive leap forward for ESAs.”

Miller pitched SecureSave during the 2022 season of GeekWire’s “Elevator Pitch” series.

OpenAI CEO Sam Altman is thinking about expanding into the final frontier for data centers, and his efforts to follow through on that thought reportedly turned into talks with Stoke Space, a rocket startup headquartered just south of Seattle.

Altman looked into putting together the funding to invest in Stoke Space, with an eye toward either forging a partnership or ending up with a controlling stake in the company, according to an account published by The Wall Street Journal. The discussions reportedly began this summer and picked up in the fall, but are said to be no longer active.

Such a move would open up a new front in Altman’s competition with SpaceX founder Elon Musk, who has talked about scaling up Starlink V3 satellites to serve as data centers for AI applications. “SpaceX will be doing this,” Musk wrote in a post to his X social-media platform.

Jeff Bezos, the founder of Amazon and the Blue Origin space venture, has voiced a similar interest in orbital data centers — as has Google CEO Sundar Pichai. Google is partnering with Planet Labs on a space-based data processing effort known as Project Suncatcher.

The tech world’s appetite for data processing and storage is being driven by the rapidly growing resource requirements of artificial intelligence applications. Altman addressed the subject on Theo Von’s “This Past Weekend” podcast in July.

“I do guess that a lot of the world gets covered in data centers over time,” Altman said. “But I don’t know, because maybe we put them in space. Like, maybe we build a big Dyson sphere on the solar system and say, ‘Hey, it actually makes no sense to put these on Earth.'”

Citing unidentified sources, the Journal said Altman has been exploring the idea of investing in space ventures to follow through on that thought. Kent, Wash.-based Stoke Space, which is working on a fully reusable rocket called Nova, reportedly became a focus of Altman’s interest.

Nova is expected to have its first launch in 2026. Just this week, Celestis announced that Stoke Space would use Nova to send cremated remains and DNA samples into deep space for Celestis’ “Infinite Flight” mission in late 2026.

Much has changed on the AI frontier in recent weeks. OpenAI is facing a strong challenge from Google and its Gemini chatbot — and this week, Altman ordered OpenAI to refocus urgently on upgrading ChatGPT, its flagship AI platform. Such down-to-earth market concerns may have been one of the factors putting Altman’s space aspirations on hold.

A spokesperson for Stoke Space said the company would not comment on the Journal’s report.

There’s another Seattle-area space venture that may well offer the kind of play that Altman is looking for: Redmond, Wash.-based Starcloud is developing its own platform for AI data centers in space. Like Stoke Space, Starcloud went through the startup accelerator program at Y Combinator, which Altman ran for a time before he became OpenAI’s CEO.

Last month, Starcloud had its first test satellite launched into space with an Nvidia data-processing chip on board. The startup is already partnering with a Colorado-based company called Crusoe to offer limited GPU processing capacity in space by early 2027.

— Jordan Arnold is the new director of the Washington State Broadband Office within the Department of Commerce, effective Jan. 2.

Under the Biden administration, Arnold served as a senior policy advisor on the Infrastructure Implementation Team within the Office of the Chief of Staff. Her work focused on helping lead the $65 billion broadband portfolio, which included implementation of the Broadband Equity, Access, and Deployment (BEAD) Program and other initiatives.

“Jordan has a deep understanding of what it takes to help communities succeed in a digital world,” said Commerce Director Joe Nguyễn in statement. “Her background working at the highest policy levels in the Biden White House will help power Washington forward in our efforts to connect everyone to the internet.”

— Rebecca Lovell has taken the role of interim president and CEO of Greater Seattle Partners (GSP), a regional public-private economic development organization. She has served as chief operating officer of the group for nearly three years.

Lovell’s past roles include CEO of Denali Founder Consulting, executive director of Madrona Venture Group’s Create33, and Seattle’s interim director of Economic Development.

“Rebecca has been a key leader in our organization’s success, and we are delighted to see her at the helm of GSP. She energizes the community, the GSP team and our investors,” said Shane Jones, chair of GSP’s board of directors and a senior vice president at Alaska Airlines, in a statement.

Lovell is succeeding Brian Surratt, who took the presidency in 2022 and was recently appointed deputy mayor of the City of Seattle by Mayor-Elect Katie Wilson.

“We deeply appreciate Brian’s service, commitment and transformational leadership and are excited to see him in this strategic role with the City of Seattle,” Jones said.

Prior to Greater Seattle Partners, Surratt led a community development group, was VP at Alexandria Real Estate and spent 13 years with Seattle’s Economic Development agency, including as director.

— Jason Barnwell, a former Microsoft legal executive, is now chief legal officer for Agiloft, a California company providing software that helps businesses manage their contracts and legal agreements.

“Jason knows how to unlock the potential of legal teams, harness AI and data, and make contracting a true driver of business value,” said Agiloft CEO Eric Laughlin in a statement.

Barnwell was with the tech giant for more 15 years in a variety of legal roles. He left the position of general manager and associate general counsel for Monetization and Business Planning. Barnwell will remain in the Seattle area. On LinkedIn, he thanked his Microsoft colleagues for their support and leadership opportunities, noting that he remains “a cheerleader for Microsoft and its people.”

— Elena Winters has joined Brazil’s Elea Data Centers as vice president of international business. Seattle-based Winters was previously at Meta for more than eight years in infrastructure organization roles focused on data center and site selection. She will remain in Washington, leading Elea’s U.S. and international expansion strategy.

“Now, I’m stepping into a new challenge — gaining experience on the other side of the business, partnering closely with hyperscalers (not working for them!) to help accelerate the growth of AI infrastructure in LATAM,” Winters said on LinkedIn.

— Seattle startup Aarden AI named Michael Gleason as its staff data scientist. The company recently came out of stealth and offers an AI platform that helps landowners research and navigate deals with developers eager to build data centers, clean energy installations, housing and other uses. Gleason most recently worked as a geospatial data scientist at a national laboratory.

Editor’s note: Story updated to include interim CEO for Rebecca Lovell’s new title.

Seattle-based startup Otto announced the wide release Thursday of its AI-powered travel assistant — Otto the Agent — in a bid to bring a concierge-level experience and personalization to business travelers.

The platform has been in closed beta for nine months. GeekWire first reported about its stealthy operations in August 2024.

Founded by longtime travel industry veterans, Otto was incubated and spun out of Seattle-based Madrona Venture Labs, the former startup studio associated with Madrona.

“The goal here is to mimic or create as good or better an experience than the best ever executive assistant, to help you book your business travel,” said founder and CEO Michael Gulmann, who spent nearly a decade at Expedia Group in various leadership roles, and also worked at business travel management giant Egencia.

Steve Singh, managing director at Madrona who co-founded business expense software giant Concur, is executive chairman of Otto.

Otto is built to learn and understand an individual’s travel habits — airline and hotel preferences, seat choices, loyalty programs, and even nuanced needs like finding rooms that avoid train noise or finding hotels with rooftop bars. Gulmann said Otto uses that knowledge to instantly surface the best flights and hotels without the the typical endless-scroll experience.

And unlike general-purpose AI tools that send users to external booking sites, Otto handles the entire transaction end-to-end, from booking to cancellations to rebooking and credit management, all within the same interface.

Otto can also connect to a traveler’s calendar and proactively detect upcoming trips and suggest itineraries before the traveler asks.

Barney Harford, former CEO of Orbitz Worldwide and former COO of Uber, called Otto “a glimpse into the future,” saying that after using it for several months it knows his business travel preferences “and has simplified the shop and book process down to just a couple of minutes.” Harford is an investor in Otto.

Beyond flights and hotels, a clear next step in Otto’s development will be the addition of car rentals and dinner reservations — things an executive assistant “back home would be helping with when you’re on the road,” Gulmann said.

“The reality is, most people don’t have an EA,” he added. “A little bit of the genesis of the company was, I was fortunate enough to have an EA at Expedia for a long time, once I got to a certain level, and it was amazing.”

Otto is available for free to individual business travelers as well as small and mid-sized businesses for the next 12 months. The startup makes money on commissions. Through a partnership with travel management company Direct Travel, Otto is also launching upcoming pilot programs with two companies Gulmann could not yet name.

The company is competing with other startups, as well as incumbents that are developing their own AI-fueled tools.

Direct Travel, which was acquired by Madrona and others in April 2024, invested in Otto’s seed round.

Singh is also executive chairman at Direct Travel. Since departing Concur a few years after its $8.3 billion acquisition to SAP in 2014, Singh became executive chairman at Spotnana, a travel-as-a-service technology platform; at Center, a corporate card and expense management platform; and Troop, a group meetings and events company.

Gulmann said innovating around travel again was the “last thing he thought he’d get back into” but a lot has changed since Expedia and others came along to displace human travel agents in the 1990s. Otto is like going back to the personalization aspect of travel agents but with the tech twist added in.

“It’s insanely faster to develop and to build the product,” he said. “We’re doing it with, including myself, a 10-person team. So, not tiny, but nowhere near the developer and engineer horsepower that Expedia or Booking.com have. But yet, I think we’re going a lot faster than they are now.”

Related:

• The new AI executive assistants: Smarter, faster, still not as good as the real thing

Washington state regulators ordered Seattle-based cryptocurrency company Coinme to stop transmitting money for customers in the state, alleging the startup improperly claimed more than $8 million in customer funds as its own income.

The Washington State Department of Financial Institutions (DFI) announced Monday that it issued a temporary cease-and-desist order and statement of charges against Coinme, which lets people buy crypto with cash at kiosks nationwide and says it runs the largest crypto cash network in the world.

DFI said Coinme improperly treated more than $8 million owed to customers on unredeemed crypto “vouchers” as company income. The agency said Coinme did not adequately disclose how and when it would recognize those unredeemed amounts as revenue and failed to turn unclaimed funds over to the state as required under Washington’s unclaimed property laws.

DFI said those issues amount to unfair and deceptive practices and “unsafe and unsound” conduct that could lead to insolvency or loss of customer funds.

DFI also alleged that Coinme failed to maintain required financial reserves, filed inaccurate reports, and listed an inactive customer support phone number on vouchers for several months last year. The company had a negative tangible net worth at year-end 2022, 2023, and 2024, according to the charges.

The agency is seeking to revoke the company’s money transmitter license, impose a $300,000 fine, and ban CEO and co-founder Neil Bergquist from Washington’s money transmitter and currency-exchange industry for 10 years.

“Washington’s money transmission laws exist to protect consumers that rely on licensed companies to safely transmit funds,” DFI Director Charlie Clark said in a statement. “When our investigations reveal serious violations, we will take appropriate action.”

Coinme pushed back on the allegations, calling it an accounting dispute over a discontinued product. In a statement, the company said it eliminated the voucher system in August 2023 and now credits purchases instantly to customer accounts.

“Following professional guidance, we treated unredeemed voucher payments the same way major retailers treat unredeemed gift cards — a widely accepted accounting practice,” Ben Enea, Coinme’s chief compliance officer, said in a statement.

The company said all vouchers can still be redeemed at any time with no expiration date, and customers can request refunds in U.S. dollars if they prefer. Coinme noted that the unredeemed vouchers represent less than 1% of the more than $1 billion in transactions the company has processed since its 2014 founding.

Coinme also expressed frustration with the regulatory process, claiming it wasn’t contacted during the investigation and only learned of the concerns when the order was announced.

Under the temporary order, existing Washington customers can still withdraw their assets but no new business is permitted.

The company, which raised $10 million in 2021, was licensed by Washington state in April 2014 and soon after launched its first “Bitcoin ATM.” It now operates cryptocurrency kiosks through partnerships with MoneyGram and Coinstar.

Coinme said it has requested an administrative hearing to contest the order.

Govstream.ai, a Seattle-area startup building AI-native permitting tools for local governments, raised $3.6 million in funding, the company announced Thursday.

The seed round was led by Menlo Park, Calif.-based 47th Street Partners, with participation from Nellore Capital of Palo Alto, Calif., Seattle-based Ascend, and angel investors including Socrata founder Kevin Merritt and First Due co-founder and CEO Andreas Huber.

Govstream.ai’s platform sits on top of the systems cities already use and acts as a conversational “copilot” for permit techs, planners, and reviewers. The company says the technology answers questions, checks documents, compares plan sets, and helps move applications through review faster.

The first public deployment is with the City of Bellevue, where Govstream.ai’s smart assistant has been helping Development Services staff with internal permitting and zoning questions since this summer.

“Cities are under intense pressure to add housing, support small businesses, and keep development sustainable, all while working inside permitting systems that were never really rethought for this moment,” said Safouen Rabah, founder and CEO of Govstream.ai.

In Washington, for example, state projections show that roughly 1.1 million additional homes will be needed by 2044 to keep up with population growth, and about 650,000 of those will need to be affordable for low-income households.

Rabah said permitting has been digitized in pieces but not truly modernized end to end. AI can reason over hundreds of pages of plans and regulations and surface what matters.

“That’s how cities move more homes and critical infrastructure from ‘submitted’ to ‘approved’ without burning people out on either side of the counter,” Rabah said. “Every month of delay we eliminate reduces costs of a new housing unit by about $5,000 on average and makes more projects economically pencil out.”

In July, Seattle Mayor Bruce Harrell issued an executive order intended to speed the permitting process for housing and small businesses in the city, using AI software from Boston- and Chicago-based CivCheck to aid permit applicants and city reviewers. Other cities, including Los Angeles, Austin and Honolulu are using AI to improve their processes.

In Bellevue, Govstream.ai is targeting and seeing signs of results including:

• A roughly 30% reduction in the burden of routine inquiries, including fewer “Where do I start?” and “Do I need a permit for this?” calls and emails.
• Up to 50% fewer re-submittals by catching missing or incorrect items before an application is formally filed.
• Up to 2X faster starts to first review on many project types, because reviewers start with context instead of a 200-page PDF.

Beyond Bellevue, the startup is gearing up to deploy in additional U.S. cities. Rabah declined to share financial metrics, but said revenue is growing as Govstream.ai converts design partners into production deployments.

A veteran of government-tech companies including Socrata and Tyler Technologies, Rabah started Govstream.ai in July 2024. The company currently employs five people and the new funding will fuel growth to 10 to 12 people over the next 12 months with the addition of engineering and AI roles in the Seattle area.

Govstream was previously featured in GeekWire’s Startup Radar series.

Bill Gates and the Gates Foundation are raising the alarm over the deadly impacts of international funding cuts in global health. Slashed budgets are projected to reverse decades of progress, causing the number of children dying before their fifth birthday to rise for the first time this century. An estimated 4.8 million children are expected to die this year, an increase of 200,000 deaths compared to last year.

“That is something that we hope never to report on, but it is a sad fact. And there are many causes, but clearly one of the key causes has been significant cuts in international development assistance from a number of high-income countries,” said Mark Suzman, CEO of the Gates Foundation, in a briefing with media this week.

Suzman specifically called out the U.S., the United Kingdom, France and Germany for “making significant cuts” to their support. Internationally, funding plunged 26.9% below last year’s levels, according to the philanthropy.

The Gates Foundation today released its annual Goalkeepers Report, which tracks progress on measures including poverty, hunger, access to clean water and energy, environmental benchmarks and other metrics.

The Seattle-based foundation worked with the University of Washington’s Institute for Health Metrics and Evaluation to model the effects of reduced assistance. The researchers found that if the cuts to aid persist or worsen, an additional 12 million to 16 million children could die over the next 20 years.

While offering dire projections, the document aims to be a call to action for governments and philanthropists large and small.

“This report is a roadmap to progress,” Gates writes, “where smart spending meets innovation at scale.”

The billionaire Microsoft co-founder calls out some specific areas that could yield the most benefit, including primary healthcare, routine immunizations, the development of improved vaccines and new uses of data.

Modeling in the report predicts that by 2045, better vaccines for respiratory syncytial virus (RSV) and pneumonia could save 3.4 million children, while new malaria tools could save an additional 5.7 million kids. Shots of lenacapavir could successfully prevent and treat HIV.

The foundation calls attention to the life-saving benefits of vaccinations as the U.S. Secretary of Health Robert F. Kennedy Jr. continues to undercut public support of vaccines.

With the backdrop of reduced federal funding for global humanitarian causes and backpedaling on vaccinations, Gates earlier this year announced plans to give away $200 billion — including nearly all of his wealth — over the next two decades through the Gates Foundation.

The Seattle-based organization, which celebrates its 25th anniversary this year, will sunset its operations on Dec. 31, 2045. The philanthropy is the world’s largest and has already disbursed $100 billion since its founding.

“If we do more with less now — and get back to a world where there’s more resources to devote to children’s health — then in 20 years, we’ll be able to tell a different kind of story,” Gates writes in the report. “The story of how we helped more kids survive childbirth, and childhood.”

Amazon’s new “Amazon Now” ultra-fast delivery for household essentials and fresh groceries passed the speed test on Tuesday.

During a trial of the newly launched service, it took 23 minutes from the click of the order button on the Amazon shopping app to the drop of the items at my house. That time easily meets Amazon’s promise of 30-minutes-or-less delivery.

Amazon Now is rolling out to eligible neighborhoods in Seattle and Philadelphia. Customers using the Amazon app or website can browse a curated selection of fresh produce, meat and seafood, pantry staples, frozen foods, beverages, household supplies and more.

Customers are able to track their order status and tip their driver within the Amazon Now feature. Prime members pay discounted delivery fees starting at $3.99 per order, compared with $13.99 for non-Prime customers, with a $1.99 “small basket” fee on orders under $15.

GeekWire reported last week that Amazon was building out a new rapid-delivery hub at a former Amazon Fresh Pickup site in Seattle’s Ballard neighborhood. (That site did not fulfill the order I placed on Tuesday.) Amazon this week revealed more details about Amazon Now.

Permit filings detail how employees pick and bag items in a back-of-house stockroom, stage completed orders on front-of-house shelves, and hand them off to Amazon Flex drivers, who are expected to arrive, scan, confirm, and leave with a package within roughly two minutes. The operation is slated to run 24 hours a day, seven days a week, “much like a convenience store,” according to the filings.

Keep reading for details on how the process works.

The shopping

My wife prefers to do all the shopping for our household and she does so at several different stores including Trader Joe’s, Fred Meyer, Town & Country, and Costco. Our neighborhood, Ballard, isn’t exactly a food desert, and prior to conducting my Amazon Now test, I passed a Safeway en route to stops at Walgreens and Metropolitan Market within a few blocks of my house.

But for the sake of speed and convenience and this test, I browsed the Amazon Now selection looking for a few items we could use. I chose a Red Baron frozen pizza ($4.37); 365 by Whole Foods Market multigrain bread ($2.85); a 4-pack of Duracell AA batteries ($5.47); Saltine crackers ($4.05); Sabra classic hummus ($3.95); and a 6-ounce pack of blackberries ($2.17).

The six items totaled $22.86, plus the $3.99 delivery fee, 64 cents in tax, and a $3 tip for the driver — $30.49 total.

There’s either a reason why my wife does all the shopping or groceries really are very expensive these days, because $30 feels like a lot for six items. Although, $7 of that does include delivery fee and tip — the price of on-demand convenience!

The tracking

I placed the order at 12:38 p.m. and the Amazon app and a confirmation email both immediately estimated that delivery time would be 1:05 p.m.

A status bar in the app showed where my items would be in the chain of events: ordered, packed, out for delivery, and delivered.

Within just a few minutes the status changed from ordered to out for delivery, and I watched as a small Amazon vehicle icon made its way west across Seattle toward my house. The delivery estimate time dropped a couple minutes to 1:02 p.m.

When a white van showed up in front of my house in less than 10 minutes I was sure this story was going to go in a different direction about just how speedy Amazon Now is. But my neighbor was getting a bunch of stuff delivered from IKEA — no one shops in stores anymore, I guess.

For what it’s worth, transportation software company INRIX released its annual Global Traffic Scorecard this week, with details on how much time people lose sitting in traffic. INRIX says Seattle congestion is climbing again, especially in last-mile corridors that delivery fleets rely on.

“The [Amazon Now service] may end up distributing demand more evenly across the transportation network, rather than concentrating congestion via larger hubs,” Bob Pishue, transportation analyst at INRIX, told GeekWire.

The delivery

I watched via the app as the Amazon vehicle icon neared my house and I stepped onto my front porch at 1 p.m. to see my driver arrive. Wearing his blue Amazon vest, the driver placed a brown paper Amazon Now bag in my hand for what amounted to a 23-minute process from start to finish.

The driver said he made his pickup from an Amazon Now-specific facility that is located near a Whole Foods location at Roosevelt Way NE and NE 64th Street — roughly 3.5 miles or 15 minutes from my house.

The driver had not heard anything about the planned Amazon Now delivery hub just down the road from my house in Ballard, at 5100 15th Ave. NW.

The groceries

The six items I ordered were packed as neatly as you’d expect, even if the loaf of bread did get a little smooshed.

The frozen pizza was still cold, and so was the hummus. The blackberries looked like any random, small pack of blackberries I might find in the fridge and finish off in one sitting.

The batteries were really the only thing I needed at the moment, and I’d have preferred to be able to buy a more economical pack of 12 or 20, but a four pack was the only option. Maybe four batteries is all anyone needs from their fast-delivery convenience store.

Final thoughts

I’m old school-ish. I like going to the grocery store. I like seeing people, browsing aisles, and talking to the cashier (if they haven’t all been replaced by self-checkout). We’re not in Covid times. No part of me really needs or wants a bag of six random grocery items quickly delivered to my front porch in the name of convenience.

I’m clearly not the target audience for Amazon Now. My 18-year-old watched me as I stood at the window waiting for the driver and asked, “What is it, like DoorDash?”

“I guess so,” I said.

But if I was sick on my couch and wanted soup, Saltines and a ginger ale in 30 minutes or less, and didn’t want to move to go get it, I might use the service again.

Or if I’d already been to the store that day and forgot some items that were needed for dinner, I could see biting the bullet. Especially if the drive back to the grocery store was not so quick.

While at Met Market earlier that morning, I watched a woman in self-checkout pull at her receipt and the whole roll of tape fell out of the machine and rolled across the floor unspooling.

“Don’t worry, I’ve got it!” said the human employee monitoring self-checkers. “I need to show I’m essential.”

Seattle startup Gradial raised a $35 million Series B round to expand its AI platform that automates the behind-the-scenes work of enterprise marketing. VMG Partners led the round, with participation from existing backers Madrona and Pruven Capital.

It’s the second round of funding this year for Gradial, which raised $13 million in May. Total funding is $55 million. The company is valued at $350 million.

Gradial is targeting what it calls the “content supply chain” — the workflows that move marketing content to live campaigns. Its AI “agents” plug into existing systems to handle tasks such as CMS authoring, brand redesigns, QA, and large-scale campaign operations.

“Every enterprise marketing team faces the same challenge. Their current tools and processes are too fragmented for them to move at the speed they need,” co-founder and CEO Doug Tallmadge said in a statement. “Gradial agents live inside the workflow and learn to do the work just like a human employee would.

Customers include AWS, Prudential, and T-Mobile. Gradial was featured during AWS CEO Matt Garman’s keynote presentation this week at AWS re:Invent.

Gradial sits in a fast-growing category of “agentic” AI tools that go beyond content generation to orchestrate complex workflows in real time.

“Gradial’s agents don’t just assist; they perceive, decide, and coordinate in the flow of real work,” Madrona wrote in a blog post. “They represent a new class of reasoning machines that work alongside humans to manage complexity, turn feedback into foresight, and compound improvement over time.”

Tallmadge previously worked at SpaceX as a software engineering manager. Other co-founders include chief growth officer Anish Chadalavada, a former AI strategy manager at Microsoft and investor at Point72 Ventures; CTO Deip Kumar, who also worked at SpaceX and Microsoft; and COO Anup Chamrajnagar, who worked at Point72. All four co-founders graduated from Dartmouth College.

Gradial raised $5.4 million in a seed round in February 2024. The company employs around 50 people.

David Baker’s lab at the University of Washington is announcing two major leaps in the field of AI-powered protein design. The first is a souped-up version of its existing RFdiffusion2 tool that can now design enzymes with performance nearly on par with those found in nature. The second is the release of a new, general-purpose version of its model, named RFdiffusion3, which the researchers are calling their most powerful and versatile protein engineering technology to date.

Last year, Baker received the Nobel Prize in Chemistry for his pioneering work in protein science, which includes a deep-learning model called RFdiffusion. The tool allows scientists to design novel proteins that have never existed. These machine-made proteins hold immense promise, from developing medicines for previously untreatable diseases to solving knotty environmental challenges.

Baker leads the UW’s Institute for Protein Design, which released the first version of the core technology in 2023, followed by RFdiffusion2 earlier this year. The second model was fine-tuned for creating enzymes — proteins that orchestrate the transformation of molecules and dramatically speed up chemical reactions.

The latest accomplishments are being shared today in publications in the leading scientific journals Nature and Nature Methods, as well as a preprint last month on bioRxiv.

A better model for enzyme construction

In the improved version of RFdiffusion2, the researchers took a more hands-off approach to guiding the technology, giving it a specific enzymatic task to perform but not specifying other features. Or as the team described it in a press release, the tool produces “blueprints for physical nanomachines that must obey the laws of chemistry and physics to function.”

“You basically let the model have all this space to explore and … you really allow it to search a really wide space and come up with great, great solutions,” said Seth Woodbury, a graduate student in Baker’s lab and author on both papers publishing today.

In addition to UW scientists, researchers from MIT and Switzerland’s ETH Zurich contributed to the work.

The new approach is remarkable for quickly generating higher-performing enzymes. In a test of the tool, it was able to solve 41 out of 41 difficult enzyme design challenges, compared to only 16 for the previous version.

“When we designed enzymes, they’re always an order of magnitude worse than native enzymes that evolution has taken billions of years to find,” said Rohith Krishna, a postdoctoral fellow and lead developer of RFdiffusion2. “This is one of the first times that we’re not one of the best enzymes ever, but we’re in the ballpark of native enzymes.”

The researchers successfully used the model to create proteins calls metallohydrolases, which accelerate difficult reactions using a precisely positioned metal ion and an activated water molecule. The engineered enzymes could have important applications, including the destruction of pollutants.

The promise of rapidly designed catalytic enzymes could unleash wide-ranging applications, Baker said.

“The first problem we really tackled with AI, it was largely therapeutics, making binders to drug targets,” he said. “But now with catalysis, it really opens up sustainability.”

The researchers are also working with the Gates Foundation to figure out lower-cost ways to build what are known as small molecule drugs, which interact with proteins and enzymes inside cells, often by blocking or enhancing their function to effect biological processes.

The most powerful model to date

While RFdiffusion2 is fine-tuned to make enzymes, the Institute for Protein Design researchers were also eager to build a tool with wide-ranging functionality. RFdiffusion3 is that new AI model. It can create proteins that interact with virtually every type of molecule found in cells, including the ability to bind DNA, other proteins and small molecules, in addition to enzyme-related functions.

“We really are excited about building more and more complex systems, so we didn’t want to have bespoke models for each application. We wanted to be able to combine everything into one foundational model,” said Krishna, a lead developer of RFdiffusion3.

Today the team is publicly releasing the code for the new machine learning tool.

“We’re really excited to see what everyone else builds on it,” Krishna said.

And while the steady stream of model upgrades, breakthroughs and publications in top-notch journals seems to continue unabated from the Institute for Protein Design, there are plenty of behind-the-scenes stumbles, Baker said.

“It all sounds beautiful and simple at the end when it’s done,” he said. “But along the way, there’s always the moments when it seems like it won’t work.”

But the researchers keep at it, and so far at least, they keep finding a path forward. And the institute continues minting new graduates and further training postdocs who go on to launch companies or establish their own academic labs.

“I don’t surf, but I sort of feel like we’re riding a wave and it’s just fun,” Baker said. “I mean, it’s so many, so many problems are getting solved. And yeah, it’s really exhilarating, honestly.”

The Nature paper, titled “Computational design of metallohydrolases,” was authored by Donghyo Kim, Seth Woodbury, Woody Ahern, Doug Tischer, Alex Kang, Emily Joyce, Asim Bera, Nikita Hanikel, Saman Salike, Rohith Krishna, Jason Yim, Samuel Pellock, Anna Lauko, Indrek Kalvet, Donald Hilvert and David Baker.

The Nature Methods paper, titled “Atom-level enzyme active site scaffolding using RFdiffusion2,” was authored by Woody Ahern, Jason Yim, Doug Tischer, Saman Salike, Seth Woodbury, Donghyo Kim, Indrek Kalvet, Yakov Kipnis, Brian Coventry, Han Raut Altae-Tran, Magnus Bauer, Regina Barzilay, Tommi Jaakkola, Rohith Krishna and David Baker.

Amazon has agreed to pay more than $3.7 million to settle claims with the City of Seattle’s Office of Labor Standards (OLS) over allegations that it violated ordinances protecting gig and app-based workers during the pandemic.

OLS said in a news release Wednesday that Amazon only provided premium pay and paid sick and safe time (PSST) to workers when they performed deliveries for Amazon Flex’s food or grocery business lines — but not to workers who performed package deliveries from Amazon’s warehouses.

Amazon Flex uses independent contractors that drive their own vehicles to deliver items for Amazon business lines.

Amazon denied the allegations, but will pay $3,777,924.10, consisting of settlement payments and credits to 10,968 affected workers and $20,000 in fines to the City of Seattle.

The alleged violations cover three city ordinances: Gig Worker Premium Pay, Gig Worker Paid Sick and Safe Time, and App-Based Worker Paid Sick and Safe Time.

OLS alleged that in violation of the Gig Worker Premium Pay ordinance, between Aug. 27, 2021, and Oct. 31, 2022, Amazon failed to provide premium pay to Amazon Flex gig workers for deliveries with a pick-up and/or drop-off in Seattle that were not for its food/grocery business lines.

OLS further alleged violations of the Gig Worker Paid Sick and Safe Time and the App-Based Worker Paid Sick and Safe Time ordinances between Jan. 31, 2021, and Jan. 12, 2024. The agency said Amazon Flex failed to establish an accessible system for gig workers to request and use PSST for workers that were not delivering for its food/grocery business lines, and it failed to provide correct monthly PSST notification to workers that were not delivering food/grocery.

“Gig workers served on the frontlines throughout the pandemic, providing critical services like grocery and food delivery to our vulnerable neighbors and elders,” Mayor Bruce Harrell said in a statement. “These workers remain a valued part of our workforce today and deserve fair pay and protections.”

The Gig Worker Premium Pay and Gig Worker PSST ordinances were temporary ordinances enacted during the pandemic to allow gig workers access to extra pay and sick leave benefits. With the lifting of the mayor’s emergency order on Oct. 31, 2022, the two ordinances are no longer in effect.

The settlement with Amazon Flex is the second largest in OLS history, according to OLS Director Steven Marchese.

In August, Uber Eats agreed to pay $15 million to more than 16,000 delivery workers in Seattle over allegations that the tech giant violated laws regulating how workers are paid. A majority of that settlement was related to the city’s Independent Contractor Protections (ICP) Ordinance, which passed in 2021 and aims to ensure pay transparency. 

Affected Amazon Flex workers can expect settlement payments starting around Jan. 1, according to OLS.

Update: Amazon provided the following statement to GeekWire on Wednesday:

“The Puget Sound region is our home, and we’re proud to serve customers here while supporting the community through good job opportunities, support for local small businesses and organizations, and hundreds of millions in local investments. We’ve always complied with Seattle laws relating to providing paid sick and safe time to delivery partners — including when the City Council enacted emergency measures during the pandemic for food delivery app-based workers, and following the 2024 expansion of the rule to include all app-based workers. While we strongly disagree with OLS on the facts of this matter, we’re pleased to put it behind us and remain focused on continuing to improve the experience for our customers and the drivers who deliver to them.”

LAS VEGAS — After spending nearly two hours trying to impress the crowd with new LLMs, advanced AI chips, and autonomous agents, Amazon Web Services CEO Matt Garman showed that the quickest way to a developer’s heart isn’t a neural network. It’s a discount.

One of the loudest cheers at the AWS re:Invent keynote Tuesday was for Database Savings Plans, a mundane but much-needed update that promises to cut bills by up to 35% across database services like Aurora, RDS, and DynamoDB in exchange for a one-year commitment.

The reaction illustrated a familiar tension for cloud customers: Even as tech giants introduce increasingly sophisticated AI tools, many companies and developers are still wrestling with the basic challenge of managing costs for core services.

The new savings plans address the issue by offering flexibility that didn’t exist before, letting developers switch database engines or move regions without losing their discount. 

“AWS Database Savings Plans: Six Years of Complaining Finally Pays Off,” is the headline from the charmingly sardonic and reliably snarky Corey Quinn of Last Week in AWS, who specializes in reducing AWS bills as the chief cloud economist at Duckbill.

Quinn called the new “better than it has any right to be” because it covers a wider range of services than expected, but he pointed out several key drawbacks: the plans are limited to one-year terms (meaning you can’t lock in bigger savings for three years), they exclude older instance generations, and they do not apply to storage or backup costs.

He also cited the lack of EC2 (Elastic Cloud Compute) coverage, calling the inability to move spending between computing and databases a missed opportunity for flexibility.

But the database pricing wasn’t the only basic upgrade to get a big reaction. For example, the crowd also cheered loudly for Lambda durable functions, a feature that lets serverless code pause and wait for long-running background tasks without failing.

Garman made these announcements as part of a new re:Invent gimmick: a 10-minute sprint through 25 non-AI product launches, complete with an on-stage shot clock. The bit was a nod to the breadth of AWS, and to the fact that not everyone in the audience came for AI news.

He announced the Database Savings Plans in the final seconds, as the clock ticked down to zero. And based on the way he set it up, Garman knew it was going to be a hit — describing it as “one last thing that I think all of you are going to love.”

Judging by the cheers, at least, he was right.

Modern Hydrogen — a clean energy startup with technology that at one time seemed to delight Bill Gates and attracted his investment — has now laid off most of its employees and left contractors and vendors anxious about unpaid invoices.

The Seattle-area company has not publicly offered an explanation for the downsizing or said how many workers were impacted. In a recent email to business partners, officials referenced recent funding changes and said it was undergoing a “broader restructuring effort.”

Modern Hydrogen raised $125 million since launching a decade ago. It developed a device for cracking natural gas molecules, producing hydrogen as a climate friendly fuel and a material known as solid carbon that has a variety of industrial uses, including as a key ingredient in asphalt.

Gates explored that application during a visit to Modern Hydrogen last year. The Microsoft co-founder grabbed a wheelbarrow and shovel to fill a parking lot pothole with the carbon-trapping asphalt.

The layoffs hit as the company was preparing to finish its first commercial unit for a customer in Texas and had performed two successful pilot projects with utilities in Portland, Ore., and Miami.

In January, Modern Hydrogen announced a memorandum of understanding with Puget Sound Energy, a major Seattle-area utility, to collaborate in identifying industrial customers interested in the clean hydrogen technology. That was expected to include steel and cement makers and pulp-and-paper manufacturers that use processes requiring ultra-high temperatures that could be met by hydrogen.

Given that the company had seemingly solved the new technology’s technical hurdles and was building commercial momentum, employees and business partners were surprised by the layoffs.

“A lot of folks were rooting for us,” Michael Jung, Modern Hydrogen’s former government affairs and public policy lead, told GeekWire. “I think we would have solved some key problems in the energy transition.”

On Oct. 30, Amir Moftakhar, Modern Hydrogen’s chief financial officer, sent an email to some of its subcontractors and vendors disclosing the change of course.

“We wanted to inform you that, due to recent changes in our funding situation and a significant reduction in company operations, we must terminate our engagement with you effective 10/30/2025,” stated the email, which was shared with GeekWire by one of its recipients.

“This decision is part of a broader restructuring effort which is being developed and does not reflect on your work,” Moftakhar continued. “We want to sincerely thank you for the professionalism, dedication, and quality you’ve shown throughout our collaboration and for your understanding.”

It is unclear if the company is closing entirely, what will happen with the machinery and technology, and if some component of the effort will continue in a different form.

GeekWire reached out to Modern Hydrogen CEO Tony Pan for an official comment and will update the story if he responds. We contacted a Gates’ representative for a comment as well.

One subcontractor, who asked not to be named, said that until the email went out, “things were cooking along” in their collaboration with Modern Hydrogen. Now the company is anxious about if and when it will get paid for outstanding invoices that total tens of thousands of dollars.

Modern Hydrogen got its start in 2015 at Intellectual Ventures, an innovation hub created by former Microsoft researcher Nathan Myhrvold with backing from Gates. The startup, which was originally called Modern Electron, initially focused on devices that paired with home furnaces and hot water tanks to capture the appliances’ wasted heat and turn it into electricity.

In 2023 it pivoted to focus on hydrogen and changed its name. The company’s most recent round was $25 million raised a year ago. It had approximately 80 employees at the time, according to an analysis of LinkedIn data. Modern Hydrogen co-founder and former CTO Max Mankin left the company in January.

Gates has in the past been an enthusiastic supporter of hydrogen fuel. In June 2022, he posted a Gates Notes touting the so-called “Swiss Army knife” of clean energy given its versatile applications. He was a prominent investor in the company, whose other backers included NextEra Energy, one of the world’s largest utilities; Miura; National Grid Partners; IRONGREY; Starlight Ventures; Valo Ventures and Metaplanet.

Hydrogen saw a surge of interest during the Biden administration, which created hydrogen hubs around the U.S. to bolster the technology. That support has been curtailed under the Trump administration, which canceled funding for hubs in the Pacific Northwest and California, while the remaining five hubs appear to be at risk of losing support.

And on Oct. 28, Gates posted a memo on his personal blog that dampened his earlier excitement around climate efforts.

“Although climate change will have serious consequences — particularly for people in the poorest countries — it will not lead to humanity’s demise,” Gates wrote. “People will be able to live and thrive in most places on Earth for the foreseeable future.”

Editor’s note: Information added Dec. 4 to provide detail on the hydrogen hubs.

Seattle biotech startup Curi Bio, which enables the screening of new drugs using cells and 3D tissue models derived from human cells, announced $10 million in new funding.

Curi Bio’s customers include large biopharmaceutical and biotech companies such Novo Nordisk, Eli Lilly, Astrazeneca, Pfizer, Boehringer Ingelheim, UCB, Novartis and others. Its Series B round was led by Seoul-based DreamCIS, which supports biopharma R&D through extensive research services.

“We are thrilled to partner with DreamCIS, who shares our conviction that drug discovery urgently needs more human-relevant data at the preclinical stage,” said Michael Cho, Curi Bio’s chief strategy officer, in a statement. “The vast majority of new drugs fail in human clinical trials because preclinical animal and 2D cell models have failed to be good predictors of human outcomes.”

Curi Bio’s platform integrates bioengineered tissues created from induced pluripotent stem cells (iPSCs) with data collection and analysis. The additional funding will expedite its development of new platforms for cardiac, skeletal muscle, metabolic, smooth muscle and neuromuscular diseases, the company said.

The Seattle area is a hub of life science and biotech companies, including numerous efforts focused on AI-assisted research. Researchers have emphasized the need to test computer-generated drug candidates in the lab to verify their capabilities and impacts.

“Curi Bio’s unique integration of cells, systems, and data is a paradigm shift for preclinical drug discovery,” said Jeounghee Yoo, CEO of DreamCIS. “We were incredibly impressed by the company’s innovative platforms and their ability to generate functional data from 3D human tissues at scale.”

Curi Bio has raised $20 million from investors and $12 million from federal grants.

The company spun out of the University of Washington a decade ago as NanoSurface Biomedical. In April, Curi Bio celebrated the opening of its new 13,942-square-foot headquarters and research facility on the Seattle waterfront.