- Amazon is scaling back most of its in-house Nova models, cutting active development of Nova Premier, the Omni model, 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 Amazon’s AGI division and the closure of the AGI Lab it founded in 2024 after acquiring Adept.
- Resources now flow to a new Frontier Model Research group under Pieter Abbeel, with a new foundation model due at re:Invent this fall.
What Happened
Amazon is overhauling its AI strategy and scaling back most of its in-house Nova models, Business Insider reported citing insiders, as covered by The Decoder on July 28, 2026. The cuts hit the flagship Nova Premier and Omni models, the Reel video model, and the Canvas image generator, which remain online for existing customers but are no longer actively developed.
Why It Matters
Amazon first unveiled the Nova models in December 2024, positioning them as an in-house alternative to the frontier labs. Retreating from active development just over 18 months later signals a strategic reset — away from building its own flagship models and toward a narrower research bet, even as Amazon insists it is not exiting the AI race.
Technical Details
The pullback follows layoffs in Amazon’s AGI division and the closure of the AGI Lab the company founded in 2024 after acquiring the startup Adept. Resources now flow to the Frontier Model Research group led by Pieter Abbeel, who joined Amazon through its acquisition of robotics startup Covariant, with a new foundation model due at the re:Invent conference this fall. A spokesperson told Business Insider that AI models remain one of Amazon’s most important projects.
Who’s Affected
Existing Nova customers keep access in maintenance mode but lose the roadmap, and Amazon’s AGI-division staff are directly affected by the layoffs and lab closure. The move also underscores where Amazon’s real AI weight sits: the company is one of the biggest backers of Anthropic and OpenAI, with investments that could top $100 billion — a partner-first strategy that its in-house model retreat throws into relief.
What’s Next
The re:Invent conference this fall is the next checkpoint, where Abbeel’s Frontier Model Research group is expected to unveil a new foundation model. Whether that effort competes at the frontier or serves narrower, research-driven goals will indicate how far Amazon is stepping back from building its own models versus buying its way to relevance through Anthropic and OpenAI.
