TECH

Amazon to Shut Down Shanghai AI Lab Amid Strategic Shift

Published: Jul. 24, 2025 4:51 a.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

AWS Shanghai lab was announced during the first World AI Conference in Shanghai in 2018.

Days before the 2025 World Artificial Intelligence Conference is to begin in Shanghai, Amazon’s Shanghai-based AI research institute — once a centerpiece of the event’s inaugural launch — is facing its imminent closure, marking the end of Amazon Web Services Inc.’s last overseas AI lab.

Wang Minjie, an applied scientist at AWS AI Shanghai Lablet, shared on Chinese social media platform WeChat on Tuesday that the lab will be dissolved due to “strategic adjustments between China and the United States.”

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

Amazon is closing its Shanghai-based AI research institute, AWS AI Shanghai Lablet, its last overseas AI lab, citing “strategic adjustments” between China and the US.
The lab, founded in 2018, contributed over 100 academic papers and nearly $1 billion to Amazon’s e-commerce revenue.
Similar R&D reductions in China occurred at IBM and Citigroup in 2024–2025, with thousands of layoffs and roles shifting abroad.

AI generated, for reference only

Who’s Who

Amazon: Amazon's Shanghai-based AI research institute, AWS AI Shanghai Lablet, is closing due to "strategic adjustments." This marks the end of Amazon Web Services Inc.’s last overseas AI lab. The lab, established in 2018, focused on open-source initiatives and foundational AI research. Its closure comes amid financial pressures on Amazon and broader trends of foreign companies scaling back R&D in China.

Microsoft Corp.: Microsoft Corp. was mentioned in the article as having launched a major research center in collaboration with Shanghai's district governments and state-owned enterprises. This center was announced during the first World AI Conference, alongside the now-closing Amazon AI Shanghai Lablet.

iflytek Co. Ltd.: iFlytek Co. Ltd. is a Chinese company that established a major AI research center in collaboration with Shanghai's district governments and state-owned enterprises. This center was launched alongside Amazon and Microsoft's initiatives during the first World AI Conference in 2018.

IBM: The provided article mentions IBM, but it does not mention "中国工商银行" (Industrial and Commercial Bank of China). IBM abruptly laid off its remaining research teams in China in August 2024, affecting over 1,700 employees. The CEO stated that China no longer holds strategic priority for the company, and many roles were shifted to India.

Citigroup: The provided article states that Citigroup announced layoffs at its Shanghai and Dalian global tech centers in June 2025. These layoffs affected approximately 3,500 employees, with the bank indicating that these roles would be redistributed to other global hubs.

AI generated, for reference only

What Happened When

2018：: The AWS AI Shanghai Lablet was founded and announced during the first World AI Conference in Shanghai.

August 2024：: IBM abruptly laid off its remaining research teams in China, affecting more than 1,700 employees.

June 2025：: Citigroup announced layoffs at its Shanghai and Dalian global tech centers, affecting around 3,500 employees.

June 17, 2025：: Amazon CEO Andy Jassy sent a company-wide memo acknowledging potential workforce reduction due to AI-driven efficiency gains.

July 17, 2025：: Amazon confirmed layoffs within AWS teams in the United States, claiming the job cuts were largely unrelated to AI.

July 22, 2025：: Wang Minjie shared on WeChat that the AWS AI Shanghai Lablet would be dissolved due to strategic adjustments.

By late July 2025：: Days before the 2025 World Artificial Intelligence Conference in Shanghai, Amazon's Shanghai-based AI research institute was facing its imminent closure.

AI generated, for reference only