Amazon just cut jobs from its own AGI team. The unit building the AI it calls "one of the most important things we're working on."

Amazon laid off employees from its Artificial General Intelligence team.

The same team responsible for building the Nova foundation models.
The same team Amazon calls "one of the most important things we're working on."

Model customisation. Post-training. AGI data services.
Gone.

Meanwhile, Amazon forecasts $200 billion in capital expenditures this year on AI infrastructure.
More than 50% higher than 2025.

Here is the contradiction no one is talking about.

Amazon is spending $200B on compute but cutting the people who make that compute do anything useful.

Peter DeSantis admitted last month that Amazon's models "haven't been at the very frontier for the very largest, most demanding workloads."

So they are buying GPUs to run models they cannot build competitively.
And firing the people who could have changed that.

This is not a restructuring. It is a surrender.

Amazon is choosing to be a infrastructure provider, not an AI leader.
The AGI talent is going to Google, OpenAI, and Anthropic.
The $200B stays in the ground.

If you are an enterprise customer betting on Amazon's AI capabilities, your vendor just told you it does not believe in its own team.

Audit your AI vendor strategy today.
The company spending the most is not the company winning.