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Happy Wednesday! As holiday sales approach, major online shopping platforms are beefing up their distribution networks. In today's ETtech Morning Dispatch, we explore the latest happenings in the tech and startup world.■ AI, chips firms venture into new frontiers■ ETtech Done Deals■ ChatGPT faces ad challengesEcommerce platforms bolster logistics ahead of the festive rush134577285As the holiday shopping season looms, e-commerce behemoths Amazon and Flipkart are rapidly expanding their supply chain infrastructure.

This includes expanding warehouses, establishing new delivery hubs, introducing faster delivery options, and increasing presence in secondary and tier-three cities. Flipkart added 14 million cubic feet of storage space, boosting capacity by 50%, and opened over 900 additional last-mile delivery hubs. Ekart and Flipkart Minutes now manage over 8,200 facilities, extending reach to remote locations such as Leh and Kargil for the first time during Big Billion Days.

Amazon launched 20 new fulfillment centers and sort centers in cities like Raipur, Ranchi, Hassan, Meerut and Varanasi, alongside 150 new last-mile delivery stations.134577615On the hiring front, Amazon and Flipkart anticipate employing over 410,000 temporary workers across direct and indirect roles, around 30,000 more than the previous year.

Meesho plans to generate more than one million seasonal jobs, including approximately 6.5 lakh through its marketplace and 3.75 lakh in logistics. Industry projections estimate festive season e-commerce sales of Rs 1.50-1.55 lakh crore, with a 25-29% year-over-year growth rate. Quick commerce's share is expected to rise to 16% at approximately Rs 24,000 crore.

Also Read: Premium takes priority in e-commerce carts this festive seasonVertex invests in AI-focused startups RapidCanvas and Supernova134577295RapidCanvas and Supernova, two AI-focused startups, are attracting attention from venture capital firm Vertex. The firm is in discussions to invest $20 million in RapidCanvas' $20-30 million round at a $120 million post-money valuation.

Existing investors are expected to participate, with potential participation from a new investor as well. Vertex is also considering a $15-20 million investment in Bengaluru-based Supernova at a $100 million post-money valuation. These investments target companies using AI to reduce operational costs. RapidCanvas automates enterprise data workflows, while Supernova offers AI-powered language practice without live tutors.

Vertex's recent investments in creator-commerce platform Wishlink and food brand Anveshan indicate a growing emphasis on AI-driven ventures. Arivihan secures $10 million funding for AI tutoring expansion134577315Leading edtech startup Arivihan has raised $10 million in a round led by existing investors Prosus and Accel. The startup, based in Indore, aims to expand its AI tutoring services across state boards and competitive exams.

CEO Ritesh Singh Chandel told ET that the funds will be used to cover all state boards by year-end, expand CBSE offerings, and deepen presence in medical entrance preparation. EDT raises $2.4 million for kitchen appliance expansion134577451Mumbai-based kitchen appliance brand EDT has secured $2.4 million in funding led by Sauce VC to support its inventory expansion and entry into the beauty gadgets market.

This investment reflects investor interest in modern kitchen and cookware brands, driven by rising incomes and changing consumer preferences for safer materials and sleek designs. ETtech Explainer: AI's global power struggle134577310In the global AI race, companies are increasingly focusing on their hardware needs. Chipmakers are moving up the stack to better understand AI model demands, while AI firms are seeking custom silicon solutions.

AMD's $8.2 billion acquisition of World Labs exemplifies this trend, as AMD aims to align its hardware, software and systems roadmaps with real-world model requirements.