Amazon is expanding AI investments while restructuring its gaming division as part of a broader technology strategy.
Amazon Expands AI Investments as Gaming Division Restructures
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Amazon, the Seattle-based e-commerce giant founded by Jeff Bezos in 1994 and led by CEO Andy Jassy since July 2021, announced a $500 million investment in artificial intelligence research and development on July 14, 2026. The investment will focus on AWS AI tools, machine learning infrastructure, and generative AI applications for enterprise customers.
The investment comes as Amazon faces increasing competition from Microsoft (which has invested $13 billion in OpenAI) and Google (which has invested heavily in DeepMind and Gemini). Amazon Web Services (AWS) currently holds 31% of the cloud market share, compared to Microsoft Azure at 24% and Google Cloud at 11%.
"We are committed to leading in AI," Andy Jassy said in a statement. "This investment will enable us to build next-generation AI tools that will transform how businesses operate."
The investment includes $200 million for AWS AI infrastructure, $150 million for generative AI research, and $150 million for AI talent acquisition. Amazon plans to hire 500 AI engineers and researchers over the next 12 months.
Amazon's AI investments include Amazon Bedrock, Titan AI models, and CodeWhisperer, which have been adopted by over 100,000 enterprise customers.
Amazon Gaming Division Restructures
Amazon Games, the company's gaming division, is undergoing a major restructuring. According to an internal memo from Amazon Games vice president Christoph Hartmann, the division will refocus on high-potential projects and reduce its workforce in less successful areas.
"We are making strategic changes to ensure long-term growth," Hartmann wrote in the memo. "This includes focusing on projects with the highest potential for success."
The restructuring is expected to affect approximately 100 employees across Amazon Games' studios in Seattle, Montreal, and San Diego. The company is offering severance packages and transition support for affected employees.
Amazon Games has produced titles including "New World," "Lost Ark," and the upcoming "Star Wars: Eclipse." The division has had mixed success, with "New World" peaking at 900,000 concurrent players in 2021 before declining to 50,000 daily active players in 2026.
Amazon has also announced that it is canceling a previously unannounced game project that had been in development for three years. Employees working on the project will be reassigned to other teams.
How much is Amazon investing in AI?
$500 million, focused on AWS AI tools, machine learning, and generative AI.
What is happening with Amazon Games?
The gaming division is restructuring, with approximately 100 jobs affected.
Who is the CEO of Amazon?
Andy Jassy, who became CEO in July 2021.
What games has Amazon Games produced?
"New World," "Lost Ark," and the upcoming "Star Wars: Eclipse."
How does Amazon compare to Microsoft and Google in AI?
Microsoft has invested $13 billion in OpenAI, while Google has invested heavily in DeepMind and Gemini. Amazon is increasing its AI investment to compete.
