Amazon has officially closed its AI research lab in Shanghai, a significant move that reflects both the company’s broader restructuring and the growing impact of U.S.-China tech tensions.
The lab, established in 2018 by Amazon Web Services (AWS), focused on machine learning and natural language processing. However, according to Wang Minjie, an applied scientist at the facility, the team was recently disbanded as part of “strategic adjustments.”
An Amazon spokesperson confirmed the decision, stating:
“We made the difficult business decision to eliminate some roles across particular teams within AWS.”
Why It Matters
This closure follows Amazon’s earlier decisions to scale back operations in China, including shutting down its e-commerce marketplace in 2019 and discontinuing its Kindle e-book store in 2022.
The move also comes after recent AWS layoffs in the U.S., which affected teams in marketing, training, and certification.
The Bigger Picture
Geopolitical tensions and U.S. restrictions on advanced chip exports—essential for AI model training—have forced American companies to rethink their China strategies. While some export restrictions have eased, the long-term outlook remains uncertain.
Meanwhile, China has accelerated its push for AI and tech self-sufficiency, making it harder for foreign players to maintain a strong presence in the market.
Amazon’s Strategic Retreat
With the Shanghai AI lab closure, Amazon’s China exit deepens. The decision underscores the company’s pivot toward markets and projects that better align with its long-term growth strategy, while reducing exposure to regulatory and geopolitical risk.
