Amazon is overhauling its artificial intelligence strategy and scaling back most of its in-house Nova AI models, according to a report from Business Insider that cites internal sources. The cuts affect the company's flagship models, including Nova Premier and Omni, as well as the Reel video generation model and the Canvas image generator. These models will remain available in a "keep the lights on" mode for existing customers, but Amazon is no longer actively developing them.
The pullback follows recent layoffs in Amazon's AGI division and the closure of the AGI Lab that the company founded in 2024 after acquiring the startup Adept. Amazon first unveiled its Nova family of AI models in December 2024, positioning them as a key part of its AI offerings.
Despite these cutbacks, Amazon is not exiting the AI race. The company is redirecting its resources to a new Frontier Model Research group led by Pieter Abbeel, a prominent AI researcher who joined Amazon through the acquisition of robotics startup Covariant. A new foundation model is expected to be unveiled at Amazon's re:Invent conference this fall.
A spokesperson for Amazon told Business Insider that AI models remain one of the company's most important projects. Amazon is also one of the largest backers of Anthropic and OpenAI, with investments that could potentially exceed $100 billion.
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The shift in strategy reflects a broader trend in the AI industry, where companies are increasingly focusing on a smaller number of high-impact models rather than maintaining a wide portfolio. Amazon's decision to concentrate its AI efforts on the Frontier Model Research group under Abbeel suggests a bet on fundamental research and long-term capabilities.
The Nova models, while being scaled back, still serve existing customers who rely on them. The company has not announced any immediate plans to discontinue the models entirely, but the lack of active development indicates that Amazon is prioritizing other areas of its AI business.
Amazon's investment in Anthropic and OpenAI underscores its commitment to the broader AI ecosystem, even as it refines its own internal efforts. The company's partnership with Anthropic has been particularly notable, with Amazon investing billions of dollars in the AI startup.
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