Amazon Scales Back Nova AI Models Ahead of Earnings, Shifts Focus to Frontier Model Research

According to Business Insider, Amazon scaled back development of several flagship Nova AI models, including Premier, Omni, Reel, and Canvas, on Tuesday ahead of earnings Thursday. The affected models are reportedly in 'KTLO' (Keep The Lights On) mode, an engineering term for software that continues to receive maintenance and support but is no longer a primary development focus.

Amazon has shifted engineering resources toward a new initiative called Frontier Model Research (FMR), led by Pieter Abbeel, a researcher who joined the company following its acquisition of AI robotics startup Covariant. The company is developing a flagship foundation model expected to debut at re:Invent later this year. Evercore ISI reiterated an 'Outperform' rating and $315 price target, saying Amazon's second-quarter revenue forecast appears achievable with upside potential.