Amazon is overhauling its AI strategy and scaling back most of its in-house Nova models, Business Insider reports, citing insiders. The cuts hit the flagship Nova Premier and Omni models, the Reel video model, and the Canvas image generator. The models stay online in "keep the lights on" mode for existing customers but are no longer actively developed. The pullback follows layoffs in the AGI division and the closure of the AGI Lab Amazon founded in 2024 after acquiring Adept. Amazon first unveiled the Nova models in December 2024.

Amazon isn't exiting the AI race, though. Resources now flow to the Frontier Model Research group under Pieter Abbeel, who joined through the acquisition of robotics startup Covariant. A new foundation model is due at the re:Invent conference this fall. A spokesperson told BI that AI models remain one of Amazon's most important projects. The company is also one of the biggest backers of Anthropic and OpenAI, where investments could top $100 billion.

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