TLDR: Amazon has shut down its artificial intelligence research lab in Shanghai, part of its Amazon Web Services (AWS) cloud division. This closure comes amidst wider job reductions within AWS and is attributed to strategic adjustments between China and the United States, reflecting ongoing tech competition and increased scrutiny on US companies operating in China.
Amazon has confirmed the closure of its artificial intelligence (AI) research lab in Shanghai, a facility that was part of its Amazon Web Services (AWS) cloud computing division. The lab, established in autumn 2018 with a focus on fostering collaboration with the research community, ceased operations around July 23, 2025. This move is part of broader job cuts announced by AWS, which have reportedly impacted hundreds of roles globally.
Wang Minjie, a scientist at the now-disbanded Shanghai lab, indicated in a widely circulated WeChat post that the closure was “due to the strategic adjustment between China and the United States.” This statement highlights the escalating tech race and geopolitical tensions between the two nations, which have led to increased scrutiny on American companies operating in China. Other US tech giants, including Microsoft and IBM, have also recently scaled back their research divisions in the country.
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While Amazon declined to directly confirm the Shanghai lab’s closure when contacted by AFP, a spokesperson, Brad Glasser, issued a statement regarding the broader AWS job cuts: “We’ve made the difficult business decision to eliminate some roles across particular teams in AWS. These decisions are necessary as we continue to invest, hire, and optimize resources to deliver innovation for our customers.” An AWS China webpage dedicated to the lab, which was accessible on July 23, was no longer available by July 25, further corroborating the shutdown. Amazon CEO Andy Jassy had previously warned of workforce reductions, partly due to the adoption of generative AI tools, though Amazon stated that the AWS role reductions are not primarily because of AI.
