Amazon Abandons Flagship AI Models in Favor of Custom-Built Frontier Model
Amazon is shifting its focus to a custom-built AI model that it claims will be more cost-effective for customers and allow the company to prioritize its own goals. The decision comes as Amazon's AI business continues to grow rapidly, with revenue exceeding $25 billion annually.
The company's current flagship Nova AI models are being phased out in favor of a new frontier model that will be tailored to specific audiences. According to CEO Andy Jassy, this approach will give Amazon greater control over cost and allow it to focus on high-priority tasks for its customers.
Amazon Web Services' (AWS) AI business has seen significant growth in recent years, with net sales increasing by 36.8% year-over-year in Q2 2026. The company's Bedrock service offers a variety of AI models, including OpenAI's GPT-5.6 and Anthropic's Claude Opus 5.
Jassy emphasized that Amazon does not need its own frontier model to be successful, but believes it is necessary to stay competitive in the market. He noted that while several models may be comparable in capability, the competition will come down to price in the future.