Amazon closes Shanghai AI research lab in latest cost-cutting move
Investment
CNBC

Amazon closes Shanghai AI research lab in latest cost-cutting move

July 23, 2025
05:53 PM
3 min read
AI Enhanced
stocksfinancialtechcloud computingmarket cyclesseasonal analysisgeopolitical

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Amazon's closure of an artificial intelligence research lab in China is tied to recently announced layoffs in the company's cloud computing unit.

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3 min read

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investment

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Published

July 23, 2025

05:53 PM

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CNBC

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Key Topics
stocksfinancialtechcloud computingmarket cyclesseasonal analysisgeopolitical

From what the evidence shows, What's particularly noteworthy is Amazon is shutting down its re lab in Shanghai, which first opened in 2018 and focused on artificial intelligence development

The data indicates that closure is part of Amazon's recently announced layoffs in its cloud computing unit, given current economic conditions

Additionally, In contrast, Companies in the U

Meanwhile, S/ have been reassessing their operations in China amid rising geopolitical tensions between the world's two largest economies

In this articleAMZN your favorite stocksCREATE FREE ACCOUNTThe front desk of the Amazon office is pictured in New York, May 1, 2019

Furthermore, Carlo Allegri | ReutersAmazon is shuttering its re lab in Shanghai focused on artificial intelligence development, the belt-tightening move by the e-commerce and cloud computing giant

Wang Minjie, an applied scientist at the lab, wrote in a WeChat post earlier this week that Amazon disbanded the team due to "strategic adjustments amid U, given current economic conditions

Additionally, -China tensions (fascinating analysis). "Amazon spokesperson Brad Glasser said in a statement that the company "made the difficult decision to eliminate some roles across particular teams" in its Amazon Web Services unit

The Financial Times was first to report on the lab closure (something worth watching)

However, Amazon announced layoffs at AWS last week, with U

Teams focused on marketing and training and certification among those that were impacted

Additionally, Read more CNBC Amazon coverageAmazon lays off 100 employees in devices and services unitAmazon's Zoox robotaxi unit issues software recall after recent Las Vegas crashJeff Bezos discloses plan to sell up to $4

Furthermore, 8 billion in Amazon stockAmazon CEO 'optimistic' company could emerge from tariff uncertainty strongerGeopolitical tensions between the world's two largest economies have pushed a growing number of American corporations to reduce or discontinue their operations in China

President Donald Trump's aggressive tariff policies have accelerated that shift, while the Chinese government has called for self-sufficiency in AI and nology development

Has also placed restrictions on China, limiting its ability to buy chips and chip-making equipment, including from companies Nvidia and Advanced Micro Devices, that can be used to train AI models

Some of those restrictions have since eased

AWS established the Shanghai lab in 2018 with a focus on areas natural language cessing and machine learning (which is quite significant)

Nevertheless, The company has retreated from China over the past several years

On the other hand, Meanwhile, In 2022, Amazon discontinued its Kindle e-book store in the region, after shuttering its e-commerce marketplace in China in 2019, considering recent developments

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