Amazon is reportedly in the process of discontinuing multiple proprietary artificial intelligence (AI) models as part of a comprehensive overhaul of its AI strategy.
According to a report from Business Insider published on July 28, the company is reorganizing its teams and shifting its engineering focus toward competing at the cutting edge of AI technology. Sources familiar with the situation indicate that this shift comes on the heels of recent job reductions within Amazon’s Artificial General Intelligence (AGI) division and the closure of AGI Lab, established in 2024 after acquiring talent from the AI startup Adept.
The article suggests that these adjustments reflect Amazon’s desire to streamline its AI efforts, concentrating human and computational resources on its most critical initiatives instead of spreading investments across various text, image, and video AI models.
Insider sources revealed that Amazon has begun to phase out several of its flagship Nova models. This includes the premium Premier and Omni models, as well as the Reel video-generation model and Canvas image-generation model. Some staff members reported that these models have entered “KTLO” (which stands for "keep the lights on") mode, implying they still serve existing users but are no longer a primary focus for development.
Additionally, Amazon is reallocating resources from the Nova lineup to a new initiative aimed at developing frontier models, which is being led by researcher Pieter Abbeel. Abbeel joined Amazon through the acquisition of Covariant, the robotics AI startup he co-founded.
In response to inquiries, Amazon affirmed its ongoing investment in and support for the Nova models, including Nova Forge, a platform that enables businesses to create their own AI models. The company stated, “As part of our AI portfolio, we continually adapt our model offerings based on customer needs, ensuring that we provide clear guidance and migration pathways as models develop. We typically maintain production support for our models over extended periods, which is crucial for our customers, while also investing in advanced frontier model research. Our dedication to creating cutting-edge AI models remains stronger than ever.”
This news coincides with a report from Reuters, which mentioned that Amazon founder Jeff Bezos has called for enhancements to the Prime Video streaming platform to offer users clearer insights into the company's AI capabilities.
In another development regarding Amazon, recent research from PYMNTS Intelligence has highlighted a growing participation among consumers in the company’s latest shopping event, as well as that of competitor Walmart, despite an overall decline in spending across both events. PYMNTS noted, “This trade-off hints at a new phase in promotional retail, where major shopping events may draw record participation, yet struggle to consolidate consumer spending in a single venue.”




