Amazon is reorganizing its artificial intelligence division, winding down flagship in-house models, closing specialized research groups, and consolidating engineering talent behind a pared-down frontier-model effort, following recent layoffs within its Artificial General Intelligence (AGI) organisation and the complete shutdown of AGI Lab, a research unit formed in 2024 after acquiring key talent from AI startup Adept. According to a Business Insider report, Amazon is redirecting compute power and technical staff toward a single primary initiative instead of spreading resources across multiple text, image and video generation projects. The company has begun ‘deprecating’ several prominent models from its Nova lineup, including high-end Premier and Omni models, the Reel video generator and the Canvas image generator, shifting them into a “keep the lights on” (KTLO) state, meaning they remain active for existing enterprise clients but receive no active development. The remaining Nova suite will maintain select lightweight offerings, including Nova 2 Sonic and Nova 2 Lite models, alongside Nova Forge and Nova Act. An Amazon spokesperson said model evolution reflects standard lifecycle management, stating, “AI models remain one of the most important things we're working on, and that hasn't changed.” Engineering priorities now consolidate under Frontier Model Research (FMR), led by AI roboticist Pieter Abbeel, who joined via Amazon’s acquisition of Covariant, tasked with building the next-generation foundation model expected to debut at the re:Invent conference.