Amazon Is Gutting Its AI Division After Sustained Failure

According to Bloomberg, Amazon is scaling back most of its Nova AI models and reorganizing its AI teams to focus on "highest priority" goals, placing its text, video and image models in a "keep the lights on" state with minimal resources. Labor and computing power are being redirected to a single "frontier-model effort" led by Pieter Abbeel, whose robotics company Covariant Amazon acquired in 2024. The shift follows the closure of an 80-person San Francisco office focused on AGI research.