Amazon Closes Shanghai AI Lab Amid Strategic U.S.-China Shift

Amazon has closed its artificial intelligence research lab in Shanghai, citing strategic shifts and rising tensions between the U.S. and China, according to CNBC. The closure affects roles within Amazon Web Services, including recent layoffs in its U.S.-based marketing and training teams. Amazon spokesperson Brad Glasser stated that the company made the decision to reduce roles in certain Amazon Web Services teams as part of a challenging business decision. AWS launched the Shanghai lab in 2018 to focus on machine learning and natural language processing; however, escalating geopolitical pressures and Trump-era tariffs have driven many U.S. firms to reduce their operations in China. The move follows Amazon's broader retreat from the region, including the shutdown of its Kindle store in 2022 and the closure of its China e-commerce platform in 2019.