Amazon Closes Shanghai AI Lab Amid Tech Race Between US and China

Amazon has shut down its AI research lab in Shanghai, citing a "strategic adjustment between China and the United States." The lab, part of Amazon Web Services (AWS), was established in 2018 and focused on fostering collaboration with the research community. The closure comes amid a tech race between China and the US, with other US tech firms such as Microsoft and IBM scaling back their research divisions in China.

Amazon Web Services (AWS) has announced the closure of its artificial intelligence research lab in Shanghai, marking a strategic adjustment amid escalating tensions between the United States and China. The lab, established in 2018, was instrumental in fostering collaboration with the research community and contributed significantly to Amazon's open-source tools and sales, totaling nearly USD 1 billion [1].

The decision to shut down the lab comes as part of a broader retreat by US tech firms from China-based AI R&D. Export controls have tightened, and scrutiny over cross-border collaboration has intensified, leading to strategic realignments. Other major tech firms, such as Microsoft and IBM, have also scaled back their research divisions in China [2].

The closure of the Shanghai lab follows AWS's recent job cuts across its operations. While Amazon declined to confirm the closure directly, the lab's dedicated webpage was no longer accessible [2]. The move highlights the growing complexities in the tech industry's global operations, particularly in the competitive landscape of AI research.

Amazon's strategic decision to shut down the lab underscores the challenges faced by multinational tech companies in navigating geopolitical tensions. As the tech race between China and the United States intensifies, companies must balance their research and development efforts with the evolving regulatory environments.

References:
[1] https://kr-asia.com/pulses/155927
[2] https://techxplore.com/news/2025-07-amazon-shanghai-ai-lab-source.html