Amazon Is Gutting Its AI Division After Sustained Failure

Amazon is significantly scaling back its AI division after its Nova language models failed to deliver returns, putting most of its text, video, and image-generating AI models on minimal support. The company is redirecting resources toward a single "frontier-model effort" focused on robotics AI led by newly acquired researcher Pieter Abbeel, while closing its San Francisco AGI research office. The restructuring reflects Amazon's exit from the competitive large language model market where it has failed to establish a household-name offering like competitors OpenAI, Anthropic, and Google.