Amazon Shuts Down AI Lab in Shanghai Amid U.S.-China Tensions

News Desk

Islamabad: U.S. tech giant Amazon has shut down its artificial intelligence research lab in Shanghai, a source with direct knowledge of the matter confirmed to AFP.

The closure of the lab—part of Amazon Web Services (AWS), the company’s cloud computing arm—comes at a time when AI is a key battleground in the ongoing tech rivalry between China and the United States.

According to a widely circulated screenshot of a WeChat post, lab scientist Wang Minjie attributed the shutdown to “strategic adjustments between China and the United States.”

The move follows recent job cuts across various AWS teams, with some reports indicating layoffs in the hundreds.

When contacted by AFP, Amazon did not directly confirm the lab’s closure. Instead, spokesperson Brad Glasser stated, “We’ve made the difficult business decision to eliminate some roles across particular teams in AWS,” adding that such decisions are necessary for the company to continue investing, hiring, and optimizing resources to drive innovation for its customers.

As of Friday, a dedicated AWS China webpage for the lab—still accessible on Wednesday—was no longer online. An archived version of the page revealed that the lab had been established in the fall of 2018, with a mission that included fostering collaboration with the academic and research community.

Amazon is not alone in its retreat; other major U.S. tech firms like Microsoft and IBM have also scaled back their research operations in China amid escalating tech tensions between Washington and Beijing.