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Amazon Overhauls AI Strategy and Closes San Francisco Lab to Focus on Frontier Models

Amazon is restructuring its artificial intelligence strategy to concentrate engineering talent and computing resources on high-priority frontier models. The company is winding down several in-house models, including the high-end Nova Premier and Omni models, to prioritize a new flagship foundation model led by researcher Pieter Abbeel. This reorganization follows the shutdown of the AGI Lab in San Francisco, which was established to pursue artificial general intelligence. The move is part of a broader shift under senior vice president Peter DeSantis, who has consolidated the AGI organization with silicon development and quantum computing. While Amazon continues to support existing models for customers, the administration of the company's AI portfolio is shifting toward a more focused approach. Simultaneously, Amazon is undergoing physical infrastructure changes, including the renovation of two Florida warehouses. These renovations will eventually lead to a new workforce in Port St. Lucie, which is expected to reopen with 850 to 1,000 workers by 2028.

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