Amazon revamps its AI approach by discontinuing the majority of its leading models.

Amazon is undertaking a significant transformation of its artificial intelligence strategy, significantly downsizing many of its in-house models, reorganizing teams, and channeling engineers towards a fresh approach aimed at leading in the AI space, according to insiders.

These shifts come on the heels of job cuts within Amazon's Artificial General Intelligence (AGI) division, following last week’s shutdown of the AGI Lab, a dedicated research team established in 2024 after Amazon acquired most of the workforce from the AI startup Adept.

The restructuring indicates a strategic pivot for Amazon. Instead of distributing investments across various text, image, and video models, the company is zeroing in on its top priorities by consolidating engineering talent and limited computing resources.

The company has begun phasing out many of its primary Nova models, including the high-end Premier and Omni versions, along with the Reel video generation and Canvas image generation models, as reported by sources familiar with the situation. Some employees refer to these models as being in "KTLO," an acronym meaning "keep the lights on," which denotes software that continues to be supported for current users but is no longer a focus for major development.

Shifting its focus, Amazon is redirecting resources away from existing Nova models in favor of a new initiative known as Frontier Model Research (FMR), spearheaded by researcher Pieter Abbeel, who joined Amazon after the acquisition of AI robotics company Covariant. This new project is deemed a high priority and is expected to unveil a flagship foundation model at Amazon's upcoming re:Invent conference, typically held in the fall.

An Amazon representative stated that the company has a long-standing commitment to maintain AI models because of their importance to customers, affirming ongoing investment in the development of frontier models. "AI models are among our top priorities, and that remains unchanged," the spokesperson remarked. "As is the case with any AI portfolio, we adapt our model offerings based on customer needs, consistently providing guidance and migration strategies as models evolve."

Despite the organizational changes, it doesn't imply the complete abandonment of the Nova line. The remaining Nova models include Nova 2 Sonic and Nova 2 Lite foundation models, Nova Forge, a tool for model customization, and Nova Act, which focuses on AI agent technology. The new model emerging from FMR may still fall under the Nova brand.

This restructuring reflects a larger reevaluation of Amazon's AI initiatives that has been ongoing for the past year. The AGI organization was established in 2023 to develop foundational models and other technologies for future Amazon AI products, previously led by Rohit Prasad until his exit in December 2025.

Within AGI, the organization featured several specialized units, including AGI Lab, formed in 2024 after the acquisition of Adept and its co-founders. AGI Lab, directed by David Luan, concentrated on long-term AI research but was closed down last week as part of this new restructuring effort.

In addition, FMR was initiated within AGI to advance Amazon's upcoming frontier AI models. Following Prasad's departure, Abbeel took the reins, with sources indicating that FMR has since come to dominate the organization’s focus.

The broader AGI structure also underwent changes under the leadership of senior vice president Peter DeSantis, who consolidated it with the silicon development and quantum computing units in December. Sources suggest that DeSantis has been implementing a more streamlined AI strategy compared to his predecessor. Instead of pursuing various model families, he is directing resources towards a select number of frontier modeling efforts.

Employees have reportedly received little direction regarding the long-term vision for the Nova models, which has led to uncertainty within the organization.

The recent layoffs caught many employees off guard, particularly since researchers focused on frontier models have historically been among Amazon’s most valued talent. AGI operated on a different level than the rest of the company, with unique leveling and compensation structures to attract top AI expertise.

These developments represent a notable shift in Amazon's AI ambitions. Just a year ago, the AWS re:Invent conference spotlighted Nova Omni 2 as the flagship multimodal reasoning model, with CEO Andy Jassy personally promoting AGI as the powerhouse behind Amazon's most innovative foundational models, leading to the establishment of six new research groups. Now, less than three years later, significant portions of the Nova lineup are being retired as the company reorients its strategic focus towards frontier models.