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Amazon Shifts AI Focus: Ends Most Nova In-House Model Research, Resources Move to Pete Abel Team

Amazon Shifts AI Focus: Ends Most Nova In-House Model Research, Resources Move to Pete Abel Team

August 11, 2026
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Insider sources report that Amazon is revising its AI strategy, pausing active development on most of its in-house Nova series large models. This includes the flagship Nova Premier and Omni models, the Reel video model, and the Canvas image generator, all now placed in maintenance mode and serving only existing customers. The company had previously cut staff in its AGI division and closed the AGI lab launched after acquiring Adept in 2024.

Amazon Web Services cloud infrastructure and servers

Despite scaling back its in-house product lines, Amazon remains a contender in cutting-edge AI. Development resources are now concentrated on the advanced model research team led by Peter Abeles, who joined through the acquisition of robotics startup Covariant. A new foundation model is expected to be unveiled at this year's re:Invent conference. An Amazon spokesperson stated that AI models continue to be among the company's most critical projects. Additionally, as a major backer of Anthropic and OpenAI, Amazon's related investments may have exceeded $10 billion.

This shift reflects a broader trend among tech giants: moving from a multi-front approach to concentrating resources on a single top-tier cutting-edge model. By strengthening its cloud ecosystem and external investments, Amazon aims to reestablish its competitive edge in the large model frontier through targeted technological breakthroughs.

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