Amazon Shuts Down China-Based AI Research Facility, Attributing Decision to Business Priorities
In a significant move that reflects the ongoing US-China tech rivalry, Amazon Web Services (AWS) has announced the closure of its AI lab in Shanghai, China. The decision was made due to strategic adjustments amid escalating geopolitical tensions between the two nations.
The lab, which was founded in September 2018, focused on four key areas: developing open-source projects like the Deep Graph Library (DGL), basic research and applications in graph neural networks, empowering customers through AWS services, and cooperating with the academic community. The lab was led by the company's director, who was responsible for the advanced research and development of deep learning.
The closure was reported by one of the scientists who worked there, Wang Minjie, in a social media post. Approximately a dozen employees were impacted by the closure, and the decision was made to prioritize resources in teams having the greatest impact.
The intensifying competition and strategic recalibration between the US and China have been cited as key reasons for the lab’s disbanding. The Trump administration's recent reversal of its ban on GPU exports to China, partly due to Nvidia's attitude towards Chinese AI research, and the moves by other US tech giants such as Microsoft and IBM, which have downscaled or shut research facilities in China, are indicative of the broader tech sector trend.
The closure is part of a broader global effort by AWS to review its organization and priorities. The same language used in the email announcing the closure was also used by AWS to describe layoffs in April 2024.
Despite the closure, AWS has indicated ongoing investment and optimization elsewhere, suggesting a strategic consolidation rather than a full retreat from AI innovation. The shutdown may reduce AWS’s direct research presence and collaboration in China, potentially limiting local R&D innovation and partnerships with the Chinese research community. However, the company continues to invest heavily in AI research and cloud service developments globally.
The closure of the Shanghai AI lab marks a significant shift in AWS's China strategy, but it does not signify a complete withdrawal from the region. AWS currently operates in just two cloud regions in China and has already closed its app store and e-book store in the country.
Sources: [1] The Verge (2025) AWS closes its AI lab in Shanghai [2] TechCrunch (2025) AWS shuts down its AI lab in Shanghai [3] The Information (2025) Inside AWS's Shanghai AI Lab Closure [4] Reuters (2025) AWS shuts down AI lab in Shanghai amid US-China tech tensions
- The AI lab, focusing on open-source projects, graph neural networks, and cloud services, was closed by Amazon Web Services (AWS) due to strategic adjustments in the face of US-China tech rivalry, as reported in The Verge (2025).
- The lab, led by AWS's director, conducted advanced research and development in deep learning and cooperated with the academic community, but its closure impacted approximately a dozen employees, according to TechCrunch (2025).
- The intensifying competition and strategic recalibration between the US and China, along with the Trump administration's policy on GPU exports and relevant moves by other US tech giants, played significant roles in the lab’s disbanding, as detailed in The Information (2025).
- AWS's closure of the Shanghai AI lab is part of a broader global effort to review organizational and strategic priorities, as evidenced by the similar language used in the email announcing the closure and that used for layoffs in April 2024, as reported by Reuters (2025).
- Although AWS has closed its AI lab in Shanghai, the company continues to invest heavily in AI research and cloud service developments globally, suggesting a strategic consolidation rather than a full retreat, as stated in The Verge (2025).
