Amazon has quietly shut down its artificial intelligence (AI) research lab in Shanghai, according to a source with direct knowledge of the matter, marking another chapter in the escalating technological rivalry between the United States and China.
The lab, which operated under Amazon Web Services (AWS), was part of the company’s cloud computing and AI research efforts in China. A WeChat post by Wang Minjie, one of the scientists at the lab, stated that the closure came “due to the strategic adjustment between China and the United States.” The message was widely shared across Chinese social media platforms this week.
A dedicated webpage for the Shanghai lab on the AWS China site became inaccessible on Friday. Archived versions of the page show that the lab was established in autumn 2018 and was tasked with “actively fostering collaboration with the research community.”
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The lab closure aligns with broader restructuring within AWS. The company announced job cuts across several AWS divisions last week, though it did not confirm specific figures. Media reports suggest the layoffs impacted several hundred employees globally.
When asked about the Shanghai development, an Amazon spokesperson did not confirm the lab’s closure directly but acknowledged broader organisational changes. “We’ve made the difficult business decision to eliminate some roles across particular teams in AWS,” spokesperson Brad Glasser said, adding that the changes are necessary for the company to continue investing in customer innovation.
The decision comes as other US tech giants such as Microsoft and IBM have also scaled back research operations in China in recent months, pointing to shifting geopolitical and regulatory environments.
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Tech Rivalry Deepens Between Washington and Beijing
The closure of Amazon’s AI lab highlights the growing challenges for foreign technology firms operating in China. With both nations racing to establish dominance in AI and quantum computing, companies are increasingly being forced to reevaluate their global strategies.
While the exact number of employees impacted by the Shanghai lab’s closure remains undisclosed, it signals a trend of retrenchment among US tech firms under geopolitical pressure.
As tensions continue to mount over semiconductor access, data sovereignty, and cybersecurity, corporate decisions like these could further fracture global research collaboration in emerging technologies.