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Amazon is scaling back most of its in-house Nova AI model variants (Premier, Omni, Reel, Canvas), keeping only older models online for existing customers.

Hyperscaler model strategy contraction: Amazon retreats from competing with closed-source frontier models; reallocates compute away from model development toward inference infrastructure.
Trade pressSlicast · July 29, 2026 · Global · Source: The Decoder
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Amazon is overhauling its AI strategy and scaling back most of its in-house Nova models, according to Business Insider's reporting citing company insiders. The cuts affect the flagship Nova Premier and Omni models, the Reel video model, and the Canvas image generator. These models will remain operational in "keep the lights on" mode for existing customers but are no longer being actively developed. The pullback follows layoffs in the AGI division and the closure of the AGI Lab, which Amazon founded in 2024 after acquiring Adept. Amazon first unveiled the Nova models in December 2024.

Amazon is not exiting the AI race, however. The company is now redirecting resources to the Frontier Model Research group, headed by Pieter Abbeel, who joined Amazon through its acquisition of robotics startup Covariant. A new foundation model is expected to launch at the re:Invent conference this fall. A company spokesperson told Business Insider that AI models remain one of Amazon's most important projects. Amazon is also among the largest backers of Anthropic and OpenAI, with combined investments potentially totaling $100 billion.

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Amazon is scaling back most of its in-house… · Slicast