Amazon scales back AI models, signs $410M compute deal

Amazon is winding down most of its flagship AI models as part of a strategy overhaul, according to Business Insider. In a related move, the company has signed a $410 million compute deal with Recursive Superintelligence and hired a Google TPU veteran to work on its Trainium software. These steps suggest Amazon is shifting focus toward infrastructure and partnerships rather than developing its own large models. The company is also reportedly building a satellite network with over 5,000 satellites to compete with Starlink, though this is separate from the AI strategy changes.