Amazon.com (AMZN) Shuts Down Shanghai AI Lab amid AWS Job Cuts

Amazon.com, Inc. (NASDAQ:AMZN) is one of the best AI stocks to buy, according to billionaire Stanley Druckenmiller. On July 23, the company announced it is shutting down its Shanghai artificial intelligence lab. The lab was established by its cloud services unit in 2018.

The shutdown comes on the heels of reports that the company has cut hundreds of jobs in Amazon Web Services. The cuts and shutdown follow warnings by the company’s chief executive officer, Andy Jassy, of workforce reduction due to the adoption of generative AI tools.

On the other hand, the shutdown of the Shanghai artificial intelligence lab comes amid heightened tensions between Beijing and Washington. The US has heightened scrutiny on companies operating in China.

Amazon.com, Inc. (NASDAQ:AMZN) is a technology giant that is increasingly investing in AI and integrating the technology to enhance its core business, which revolves around e-commerce, cloud computing, and advertising. It employs AI for personalized product recommendations, automated data extraction, and improved customer service through tools like Alexa.

While we acknowledge the potential of AMZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.