Amazon is closing its artificial intelligence (AI) research lab in Shanghai, marking the latest strategic retreat by a major tech firm amid rising U.S.-China tensions, the Financial Times reported on Wednesday.
The move comes as Amazon implements global job cuts and joins other tech giants like Microsoft and Meta in reshaping operations to prioritize AI development.
A scientist at the Shanghai lab, Wang Minjie, said the team was being dissolved “due to strategic adjustments amid U.S.-China tensions,” according to a message shared on Chinese social platform WeChat.
Amazon Web Services (AWS) launched the lab in 2018. While the exact number of employees affected remains unclear, the Financial Times noted that AWS once employed over 1,000 people in China at its peak.
The closure coincides with heightened scrutiny from U.S. regulators over American tech companies operating in China, particularly in sensitive areas like AI and cloud computing.
