On July 22, Amazon confirmed that some positions within its AGI organization were eliminated, while stating that the company continues to build large AI models, calling it one of its most important tasks. Amazon explained the adjustment as a move to concentrate resources on the areas most critical to customers' future. This round of layoffs did not disclose the specific number of people affected. For investors, the valuation anchor for AWS's AI is being reassessed, with the pressing question being when investments will translate into paying customers, cloud revenue, and margin improvement. In December 2025, Amazon adjusted its AI-related leadership, with Andy Jassy announcing that Peter DeSantis would lead new organizations for AI models, chips, and quantum computing. Rohit Prasad left in late 2025, and Pieter Abbeel took over frontier model research within AGI. A report cited by Reuters also mentioned that AGI Lab head David Luan departed in February 2026.