Amazon shuts AI lab in Shanghai

By Alimat Aliyeva

Amazon, the American tech giant, is closing its artificial intelligence (AI) research laboratory in Shanghai, following similar moves by other major U.S. companies, including IBM and Microsoft.

All three companies are scaling back their AI research operations in China amid increasing scrutiny from U.S. authorities and heightened tensions between Washington and Beijing, according to reports. The closure of the Shanghai lab has been confirmed by several of its employees, who shared the news on Chinese social media platforms.

The lab, which was established in 2018 by Amazon Web Services (AWS), had been a significant player in AI research, producing over 100 research papers in the field. An Amazon spokesperson indirectly confirmed the closure, stating, "We have made a difficult business decision to reduce certain positions within specific AWS teams. These changes are part of our ongoing efforts to optimize resources, continue investing in innovation, and hire new talent," said Brad Glasser, an Amazon representative.

At its peak, the Shanghai lab employed over 1,000 people, contributing to Amazon's global AI initiatives. The move to shut down the facility reflects broader trends in the tech industry, where geopolitical tensions and shifting market dynamics are influencing corporate strategies.

This shift could also signal a deeper reorientation of U.S. tech companies' operations in China, where regulatory challenges and growing concerns about data security have become key issues. As AI continues to be a focal point in the global race for technological dominance, the closure of research labs like Amazon's in China could have long-term implications for both the tech industry and international relations.

Amazon, along with other tech giants, may now focus more on AI research in regions where regulatory frameworks are more favorable and geopolitical tensions are lower, such as Europe or India.