Amazon shuts down AGI Lab and cuts staff in its AI division

Amazon announced a reduction of staff in its Artificial General Intelligence (AGI) division, including the closure of the San Francisco‑based AGI Lab after just 18 months. The lab, which housed "several dozen" employees, was shut as part of a broader restructuring that also saw the elimination of roles across the AGI organization. Amazon said the move sharpens focus on AI projects that are most important to customers, while large‑scale model development remains a priority.

The layoffs come as Amazon ramps up its overall AI investment to $200 billion this year – more than 50 % higher than the previous year – with part of the funding debt‑financed. The company continues to develop its enterprise‑focused models, such as Amazon Nova and Amazon Titan. Affected U.S. employees receive 90 days of pay and benefits, job‑search assistance, and possible severance. The changes follow the departure of senior AGI leaders Rohit Prasad (late 2024) and David Luan (February 2026), with the AGI effort now overseen by Peter DeSantis, who also leads Amazon’s chip and quantum initiatives.