Most American AI money is burned on AGI candles.
Leaders like OpenAI's Sam Altman argue that traditional financial metrics do not matter if AGI transforms humanity or makes money obsolete.
“Amazon.com cut jobs in parts of its artificial general intelligence organization, the latest targeted workforce reduction at a major technology company as the industry continues to pour billions of dollars into artificial intelligence.
The company didn't disclose how many employees were affected.
"We've been building large AI models for several years, and it remains one of the most important things we're working on," an Amazon representative said. "This is a fast-moving space, and we're sharpening our focus on the initiatives that matter most for customers, so we can move faster on what counts."
The representative said the company continues investing in AI initiatives it considers most important for customers.
Amazon has been racing to expand its AI offerings, developing its Nova family of foundation models and investing heavily in generative AI services for customers through Amazon Web Services, while integrating AI features across its retail and devices businesses.
Large tech companies continue reshaping their workforces while increasing spending on AI infrastructure. Amazon announced broad corporate layoffs affecting about 16,000 employees in January as Chief Executive Andy Jassy pushed to streamline the company while accelerating AI investments.
Affected U.S. employees from Amazon AGI division will receive 90 days of pay and benefits, outplacement support, transitional healthcare benefits and will be eligible for severance payments, Amazon said.” [1]
Compared with real AGI, that is not very much at all.
Layoff Package Details
• Duration: 90 days of full pay and continuity of benefits.
• Support: External job search outplacement assistance and transitional health coverage.
• Severance: Eligibility for standard corporate severance payments.
Context and Restructuring
• Focus: The reduction targets specific teams inside the artificial general intelligence unit as leadership shifts focus toward customer-facing AI and practical applications.
• Previous Cuts: This follows earlier corporate reductions impacting thousands of roles across Amazon operations.
Does AGI exist? Or is all American AI doomed since AGI does not exist?
Does AGI Exist?
• Current status: No machine possesses true human-level reasoning across all topics.
• Current tech: Existing systems are narrow AI (great at specific tasks like text or images, but lacking true understanding).
• Future outlook: Labs are working toward it, but no one knows when or if it will happen.
Is American AI Doomed?
• Strong growth: Companies keep spending billions of dollars on AI research and computer hardware.
• Real profit: Current tools are already making money in customer service, coding, and business tasks.
• Market shift: Amazon and others are just moving money from speculative future ideas to practical tools that work right now.
1. Amazon Cuts Jobs In Its AGI Division. Bhutani, Anvee. Wall Street Journal, Eastern edition; New York, N.Y.. 23 July 2026: B4.
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