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Ebube Jones

Amazon Trims Its Artificial General Intelligence Team. Think of It as a Reset, Not a Pullback.

Amazon AWS Amazon Web Services

Despite continuing to invest aggressively in AI, Amazon (AMZN) has begun cutting jobs within parts of its Artificial General Intelligence (AGI) group as part of an internal reorganization. That makes Amazon's latest move particularly interesting.

The AI race is no longer just about releasing the next chatbot. Hyperscalers are entering a new phase of growth as AI workloads continue to increase, prompting them to invest heavily in expanding their infrastructure. Amazon alone plans to spend roughly $200 billion in 2026, and those massive AI investments have weighed on the stock, even as Amazon Web Services (AWS) continues to deliver strong growth, the advertising business expands, and the company rolls out more AI products and services.

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