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Amazon’s AWS commits $1 billion toward new unit for embedded AI engineers

By Thomson Reuters Jun 30, 2026 | 10:03 AM

By Greg Bensinger

SAN FRANCISCO, June 30 (Reuters) – Amazon said on Tuesday it is creating a new division under its Amazon Web Services cloud unit employing so-called forward-deployed engineers who embed with customers to help ​them more quickly and efficiently adopt artificial intelligence software.

The company is ‌committing an initial $1 billion to the initiative with the goal of sending five to six pods of engineers to customers for 45-day periods, said Francessca Vasquez, AWS vice president of frontier AI engineering and services.

“We have a ton of demand for customers who are asking for ‌our help ​to really drive agentic AI patterns in their ⁠workflows,” said Vasquez, in an ⁠interview prior to the announcement. Forward-deployed engineers are versatile workers who embed directly alongside clients, navigate internal politics and write production-grade code to help make models deliver results.

Amazon is a bit late to the party. Palantir Technologies ​has had its own forward-deployed engineering unit for well over a decade and others such as Salesforce, Anthropic and Google Cloud also offer their own versions ⁠of the service.

Forward-deployed engineering is a rare ⁠bright spot among tech companies that have been cutting jobs ​amid the rapid expansion of AI. Box CEO Aaron Levie said in a LinkedIn ​post in May that forward-deployed engineers are “about to become one of ‌the most in-demand jobs in tech.” And from 2023 to 2025, demand for forward-deployed engineers and similar roles grew 42-fold, according to a LinkedIn report earlier this year.

AWS said it planned to have “thousands” of employees in the new unit, without ⁠offering specifics, and would hire from outside the company to fill some roles as well as move others internally. Amazon has cut over 30,000 corporate jobs since October.

Amazon announced ⁠the new unit as ‌part of a two-day customer event in Washington, where it ⁠is expected to make additional announcements around government cloud ​offerings.

Success for ‌the new unit would be measured in how quickly ​customers can develop ⁠a new product or learn new skills with the help of Amazon’s forward-deployed engineers, said Vasquez. “We want to make sure that these customers get value in faster durations than what they’ve traditionally seen in project-based activity,” she said.

Amazon said initial customers include the National Basketball Association and Ricoh, an electronics company.

(Reporting by Greg Bensinger; ​Editing by Sanjeev Miglani)