Can be picked up with quetz. Found them very quickly in the snow area. Also seems like it can gather just about anything. The buff they get for killing insects also seems to increase the damage it does on other creatures
MEGATHERIUM: Sound Triggered?
Towards Insects, hell yeah.
The Dododex doesn't show this yet, but these things Ark Devs call Giant Sloths are the No.2 Producer of Chitin and Keratin.
You never have to worry about Cementing Paste Again!