Amazon has closed its AI research lab in Shanghai, part of a series of cost-cutting and strategic reductions in China. The lab, which opened in 2018, focused on AI technologies like natural language processing. The decision aligns with layoffs in Amazon Web Services and reflects heightened geopolitical tensions. Amazon has been withdrawing from China over the years, including the closure of its e-commerce marketplace and discontinuation of the Kindle store. This move highlights a broader trend of U.S. tech companies reevaluating their presence in China due to regulatory challenges and trade restrictions.
The closure comes amid broader layoffs within Amazon Web Services, reflecting escalating geopolitical friction between the United States and China.
Amazon spokesperson Brad Glasser confirmed the move, stating the company 'made the difficult business decision to eliminate some roles across particular teams' in AWS.
The closure of the Shanghai AI lab marks another step in this broader disengagement, contributing to Amazon's global AI capabilities while being vulnerable to international policy changes.
Several multinational companies are scaling back or withdrawing entirely from China due to the tightening regulatory environment coupled with U.S. export controls and trade restrictions.
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